Sri Lanka's devaluation of its rupee currency was a good step and should support the country's export competitiveness and safeguard its reserves over the medium-term, stated the International Monetary Fund today (Nov.23).

"We think that the exchange rate adjustment was a step in the right direction and should help support Sri Lanka's export competitiveness and safeguard its reserves over the medium term," Koshy Mathai, Sri Lanka's IMF Resident Representative told Reuters via e-mail.

President Mahinda Rajapaksa, acting in his capacity as finance minister, proposed 3 percent devaluation with immediate effect to help exporters and cut import costs, while giving his 2012 budget presentation to parliament on Monday.