Sri Lanka’s central bank lowered its benchmark interest rate by 250 bps to 14.0%, the first cut in nearly three years. Despite enjoying a 27% gain this year and leading global currency rankings, the Sri Lankan rupee may face hurdles as the government relaxes import restrictions and faces impending debt repayments. Projections suggest a currency depreciation to as low as 405 per USD in the second half of this year. Nevertheless, Sri Lanka’s economy, buoyed by a USD 3 bln IMF bailout and a boost in tourism, is gradually recovering.