EconomyPoliticsHOT10h ago

Deputy Minister Attributes Rupee Depreciation to Global Crisis, Cites Forex Rate Drop to Rs. 330

TLDR

Deputy Minister: Rupee drop to Rs. 330 is good news, not a problem.
Global crisis, not policy, blamed for forex rate drop.
No fuel price hike decisions; personal vehicle imports delayed.

Deputy Minister of Finance, Dr. Anil Jayanta Fernando, stated that the depreciation of the Sri Lankan Rupee against the US Dollar is not detrimental to the economy and does not pose a problem. He attributed this decline primarily to a global crisis stemming from the Middle East conflict, rather than government policy or decisions, noting its impact on fuel, gas, fertilizer, shipping, and insurance costs. Addressing concerns raised in Parliament by Opposition Leader Sajith Premadasa and MP Shanakiyan Rasamanickam, Dr. Fernando emphasized that sustainable borrowing, when systematically managed with parliamentary approval, is beneficial for economic stability, asserting that the government has already achieved debt sustainability. Furthermore, he clarified that no decision has been made to halt vehicle imports, with only a temporary delay in personal vehicle orders.

2 Updates

Update #3\u00b7 May 22 · 1:03 PM

Deputy Finance Minister Dr. Anil Jayantha stated in Parliament that no new decisions have been made regarding the revision of fuel prices in light of the current financial situation. He also reassured the public that there is no need to be afraid of the rupee's value falling due to the current economic conditions, and it should not be considered a problem. The minister reiterated that the government has not taken any steps to suspend vehicle imports.

Update #2\u00b7 May 22 · 11:02 AM

Deputy Finance Minister Dr. Anil Jayantha stated that the recent depreciation of the Sri Lankan Rupee is not due to government policy or wrong decisions, but rather a consequence of the global crisis triggered by the Middle East conflict. He explained that this global crisis has led to sharp increases in fuel prices, gas, fertilizer, shipping, and insurance rates. The Minister also announced that the inter-bank foreign exchange rate has fallen to Rs. 330 from Rs. 350, describing this as "good news" and a sign of the rupee's appreciation. He clarified that no decision has been made to stop vehicle imports, only that personal vehicle orders are experiencing delays of a few months.

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