LKR: The SLR, or Sri Lankan Rupee (LKR), is a currency used in Sri Lanka.
The Sri Lankan rupee is usually abbreviated as SLR, despite the fact that its international currency code is LKR.
It is the official currency of Sri Lanka’s Democratic Socialist Republic, which was previously known as Ceylon.
Key aspects to consider:
Although its official currency code is LKR, the Sri Lankan rupee is frequently abbreviated as SLR.
The central bank of Sri Lanka is in charge of the country’s currency.
Sri Lanka’s economy is expanding. Inflation is currently under control, but it has been high in the past.
The Sri Lankan Rupee (SLR) is a currency of Sri Lanka (LKR)
The rupee of Sri Lanka is divided into 100 cents. One, two, five, 10, 25, and 50 cent coins, as well as one, two, five, and ten rupee coins, are in circulation in Sri Lanka.
10 rupees, 20 rupees, 50 rupees, 100 rupees, 200 rupees, 500 rupees, 1,000 rupees, 2,000 rupees, and 5,000 rupees banknotes are available.
To avoid confusion with other currencies, the Sri Lankan rupee is usually abbreviated as SLR. Rupees are abbreviated as Rs.
The Rupee of Sri Lanka has a long and illustrious history (LKR)
In 1825, the British pound (GBP) was designated as the official currency. Prior to this time, the Ceylonese rixdollar, a money utilised in portions of Europe and several Dutch possessions, was in use. 11/3 rixdollars were exchanged for one pound.
The Indian rupee (INR) was named the official coin of the island nation by the British in 1836, when it returned to the Indian currency region.
The rupee was introduced as legal cash in Ceylon (as Sri Lanka was known at the time).
Three years later, the INR became the island’s sole legal tender. In 1948, the country declared independence from the British, and two years later, the Central Bank of Ceylon was founded.
In 1972, after the country was renamed Sri Lanka, it issued its own currency.
The Economy of Sri Lanka
The Sri Lankan economy has experienced persistent hurdles since its independence in 1948, including infighting among ethnic groups competing for government control, Marxist insurgencies, and a long civil war.
According to World Bank data, GDP increased by 3.2 percent in 2018, but inflation increased by 4.3 percent.
In 2018, real GDP was $88.9 billion, up from $56.7 billion in 2010.
After China and Kenya, Sri Lanka was the world’s third-largest tea exporter in 2018.
Cinnamon, rubber, sugar, and exotic woods including teak, mahogany, and ironwood are among prominent exporters.
Industry sectors such as service and technology also contribute to the economy.
The Central Bank’s Role
Establishing a stable economic environment was a top goal for Sri Lankan government in order to maintain social and political stability.
The Monetary Law Act offers the central bank extensive discretion in implementing monetary policy in order to achieve its economic and price stability goals.
The Central Bank is in charge of formulating and implementing monetary policy, as well as influencing the cost and availability of money.
Currently, the country’s monetary policy framework places a higher emphasis on market-based policy instruments and the utilisation of market forces to achieve desired goals.
It keeps a close eye on the money supply and engages in a robust campaign of shredding and replacing notes as needed.
The central bank is also in charge of designing, producing, and distributing banknotes and minting coins under the Monetary Control Act.
The vertical printing on the back side of Sri Lankan notes is one of their most distinctive and readily recognisable features.
Cotton material and heightened textures for the visually handicapped are also distinguishing qualities.
To counteract counterfeiting, banknotes have watermarks, security threads, see-through pictures, ink shifting, and other security features.
Converting Sri Lankan Rupees (LKR) into Other Currencies as an Example
Assume that one US dollar costs 181.26 SLR to purchase (USD). This is a USD/LKR rate of 181.26.
If the rate rises to 190, the rupee loses value since it now costs more LKR to buy a dollar.
The LKR would have liked if the rate fell to 170 because it now costs fewer rupees to buy one US dollar.
Divide one by the USD/LKR rate to find out how many US dollars can be purchased with one LKR.
The LKR/USD rate will be 0.0055 (note that the codes are reversed).
This translates to around half a cent in US dollars for a Sri Lankan rupee.
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