The Central Bank (CBSL) yesterday further expanded the trading band of USD /LKR.

CBSL Governor. Nandalal Weerasinghe directed banks to use Rs. 353.65 as the middle spot Exchange rate of USD/LKR inter bank transactions and the variation margin of Rs. 7.50 on either side (+/-) of the middle spot exchange rate.

He also said rates applicable to other currency transactions against the Sri Lanka Rupee should also be derived based on the new USD/LKR middle spot exchange rate and the variation margin.

Previously on 27 February, the CBSL expanded the daily trading band to +/- Rs. 5.00 of the middle spot exchange rate. Prior to that revision, the variation margin was +/- Rs. 2.60.

Yesterday the CBSL quoted USD telegraphic transfers rate as Rs. 343.97 (buying) and Rs. 356.73 (selling). On Wednesday they were Rs. 351.72 and Rs. 362.95 respectively.

Wealth Trust Securities said the USD/LKR on cash to spot contracts were traded within the range of Rs. 346.15 to Rs. 347.00 while the middle rate for USD/LKR spot contracts appreciated further to Rs. 353.6543 against its previous days of Rs. 358.4593.

The foreign news agencies reported that the US dollar stood at 136.40 yen in Asian trade yesterday, against 136.17 yen in New York on Wednesday.

It said talk of more aggressive US rate hikes boosted the dollar on Thursday.

There is a growing expectation rates would top out around 5.5%, though some commentators are tipping 6%, from the current 4.5-4.75%.The rise of Rupee comes amidst a rebounding US Dollar.

The dollar has risen nearly 4% from its recent lows and stands near a seven-week high against a basket of other major currencies , driven by bets the Federal Reserve will need to raise rates higher than many investors had previously forecast to cool inflation, several economic experts said.

The U.S. currency remains some 8% below the twenty-year high it attained last year.

Yet its rebound, along with a surge in Treasury yields, has already complicated the outlook for a range of trades that prospered as the dollar tumbled in the latter half of 2022.

A stronger dollar tends to tighten global financial conditions while diminishing appetite for risk-taking and weakening global trade, the Bank for International Settlements said in a report in November.

It also makes it more difficult for countries that borrowed in the U.S. currency to service their debt, a problem often acutely felt by emerging market economies.

The People’s Convention for Good Governance was held at the BMICH in the midst of an exclusive audience, all of them invited and registered by the organizers on 25 February at the BMICH.

The Convener of this national initiative Richard de Zoysa set the tone for the day out lined that the four forums that were to be the hub of the program, would speak on how we have reached this perilous predicament, what exactly is the situation we are at present and how we should work to overcome the challenges.

Maithri Gunaratne PC, former Governor of Central and Uva Province, noted that the present situation where the Constitution does not always enforce the will of the people was also crafted during his fromer President JR Jayawardena’s tenure. Gunaratne summed up by stating that the Rajapaksa Government, though ending the separatist war, failed to reconcile the country and plunged it into bankruptcy, together with the governments that followed.

Omar Khan, a US national of Pakistani heritage, having come to Sri Lanka in 1993 and a well-known motivational speaker, headlined his address a ‘Visionary Catalyst’, and spoke of the importance of following up on decisions made, if a country is to progress.

Murtaza Jaferjee the Chairman of the Advocata Institute delivered a flawless speech on Economic Recovery with a presentation of facts that had the audience captivated. Prof. Arjuna Parakrama moderated the Education Reforms panel that included Dr. Tara de Mel, Prof. Harendra de Silva and Nile Anandappa.

Shehara Parakrama and Sharhan Muhseen, a top rung investment banker and an expert in mergers and acquisitions, exchanged thoughts on the Production and Services forum.

Dr. Pakiasothy Saravanamuttu moderated an interesting panel on Ethnicity which included Selvi Sachithanandam, Ishan Jalill, Jeremy Liyanage, and Arun Siddarth who had a thought-provoking discussion on the minorities.

Arun Siddarth was candid about the caste problem that is still preventing him from entering certain facilities that are reserved for the upper caste Tamils. He also declared that it was the politicians who created the rift between the Sinhalese and the Tamils.

The Guest of Honour Dr. Walter Jayasinghe who lives in California, and does an enormous amount of social work for the underprivileged, declared open the Empowering Lanka website that will be a fully transparent fundraising platform with the inflow and outflow clearly visible.

Primarily to help alleviate poverty and develop districts that lack basic infrastructure needs, the first Directors Dr. Walter Jayasinghe and Richard de Zoysa will source funds from both international and local donors.

The funds raised will be disbursed to those who conform to a predetermined criteria laid down by the Board of Directors of the company limited by guarantee.

Once commissioned officially, funds will be used to develop District by District monthly as planned by Dr. Sarath Seneviratne who mooted this concept 15 years ago.

The Eastern and Northern Coastline of Sri Lanka have been made into a busy work site via mineral explorations at present with at least two UK and Western Australian companies have resumed activities, official sources said.

Capital Metals PLC, a UK mineral resources company listed on the London Stock Exchange, is ready to commence development of its high grade mineral sands project in the Eastern Province.

The extensive studies completed by the local Sri Lankan subsidiary, Damsila Exports Ltd. indicated the availability of commercial quantities of high grade mineral sands in this region.

Most importantly, Capital Metal’s pioneering project will, no doubt, open up a new industry in mining heavy mineral sands and other valuable mineral resources in the country and pave the way for similar projects in the future, opening up a much-needed new export industry.

Further Western Australia-headquartered Titanium Sands has announced that it is proceeding with the formal mining licence application process for its Mannar Island project, in Sri Lanka.

The company says final exploration resource work over its five main licences all exceed the Geological Survey and Mines Bureau (GSMB) minimum exploration requirements and confirm a significant heavy mineral sands project.

However Capital Metals PLC, a UK mineral resources company listed on the London Stock Exchange, is ready to commence development of its high grade mineral sands project in the Eastern Province.

The extensive studies completed by the local Sri Lankan subsidiary, Damsila Exports Ltd., indicated the availability of commercial quantities of high grade mineral sands in this region.

Local investment company, Keynes Investments Ltd., was recently brought in to hold 60% of Damsila. Keynes is principally held by Dinal Peiris, who is also the Chairman of Lanka Aluminium Industries PLC Group and several other well-known companies in Sri Lanka.

The project commenced in 2015 with Capital Metals, a specialized mineral resource exploration and development company with significant international experience, acquiring ownership of Damsila which held the initial exploration licenses.

With investment from Capital Metals, Damsila completed numerous studies and obtained approval from the Department of Coast Conservation and Coastal Resources Management for its environmental impact studies following extensive local community and governmental consultation.

With total expenditure to date of over $ 11 million, Damsila is now awaiting final approval to commence development.

Key advantages of the planned operations are that no blasting or chemicals are required and there will be continuous cleaning and restoration of the mined areas to remove the black mineral sands leaving the golden sands in place.

This project will also help to position Sri Lanka as a strategic and responsible source for these critical minerals in the global marketplace,” said Capital Metals CEO and Director Michael Frayne.

The project requires a total investment of over us $ 80 million and will bring a multitude of benefits to Sri Lanka and its people as it will generate much needed foreign exchange from export income, significantly upgraded infrastructure, employment and skills transfer, as well as various programmes to support local communities.

It is estimated that over 300 new direct jobs will be created and the Sri Lankan Government will receive over $ 100 million in royalties and taxes.