Sri Lanka has linked the rates paid to foreign currency deposit to rupee yields using powers of a Monetary Law devised by a US money doctor, as a currency crisis triggered by record liquidity injections gripped the country.
Sri Lanka has placed a ceiling rate on interbank foreign exchange swaps despite there being no dollar liquidity window for banks in a severe liquidity crunch, in the latest control slapped on financial markets hit by forex shortages from liquidity injections.