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did you know that Sri Lankan rupee has started to appreciate against other major currencies over the past few weeks for example the middle rate quoted by the Central Bank of the rupee against US dollar has appreciated to 358 from 362 rupees and against selling countries appreciated from 448 to 431 rupees why exactly is this happening one of the main factors contributing to the appreciation of the rupee is the narrowing of Sri Lanka State deficit a trade deficit occurs when the country Imports more goods and services than exports leading to a net outflow of currency this deficit puts downward pressure on the value of the currency Sri Lanka has successfully managed to reduce its State deficit through a combination of input restrictions and study exports along with the impact of global lower global commodity prices leading to a reduction in the outflow of currency this is allowed for a net saving of around 400 million US Dollars monthly compared to the same period last year adding to thi