Sri Lanka Central Bank says it would fully lift the guidance peg introduced in last May along with the complete removal of the foreign currency sell-down rule imposed on banks from next week onwards.

Sri Lanka will end a guidance peg and will also end a surrender rule from next week allowing the rupee to trade more freely, but will buy dollars to build reserves, Central Bank Governor Nandalal Weerasinghe said.

1. A daily guidance peg will no longer be announced from next week.
2. A surrender rule where the banks were asked to sell 15% of their dollar inflows will also end from Tuesday.