Sri Lanka central bank says state bank to quote rupee at 113.50/90

COLOMBO: Sri Lanka will quote the rupee at 113.50/113.90 through the state-owned Bank of Ceylon to effect a 3 percent devaluation of the currency as ordered by the president, Central Bank Governor Ajith Nivard Cabraal told Reuters on Tuesday.

"We will be quoting at a midpoint of 113.70 through Bank of Ceylon," Cabraal said.

Sri Lankan President Mahinda Rajapaksa, acting in his capacity as finance minister, proposed the devaluation to help exporters and cut import costs, while giving his 2012 budget presentation to parliament on Monday.

The central bank ordinarily uses two state banks to control the foreign exchange market, with one setting the selling rate and the other the buying rate.