COLOMBO: The move to devalue the Sri Lankan rupee was aimed at improving macroeconomic stability as the country struggles with its worst financial crisis in years, the country’s central bank chief Ajith Nivard Cabraal said on Friday.

The central bank earlier in the week introduced a flexible exchange rate framework, which saw the rupee depreciate by around 30% to 260 rupees against the dollar on Thursday.

“The decision to impose a flexible exchange rate has caused challenges but we are confident these can be managed,” Cabraal said in a short video uploaded on Facebook.

“However, it was a step taken to maintain macroeconomic stability and ensure financial system consistency,” he added.