Rupee appreciates against US dollar

The rupee has risen two percent against the U.S. dollar so far this year, rebounding from a plunge that began in 2001, officials said Monday.

The governor of the Central Bank of Sri Lanka - , Amarananda Jayawardena, attributed the rupee’s gains to market forces.

Dealers expect the local currency to appreciate further this year amid a flood of aid expected on the back of Sri Lanka - ‘s efforts to end a 20-year civil war and increased export earnings.

Donor countries have pledged an aid package of US$4.5 billion to help rebuild the country after Tamil rebels and the government signed a cease-fire agreement in February 2002.

The cessation of hostilities has helped attract foreign investment and loan pledges from international lenders, strengthening the currency by adding to hopes of an economic recovery. AFP