Opposition MP Harsha de Silva has expressed concern over the recent depreciation of the Sri Lankan Rupee, warning that declining confidence in the government’s economic management could further pressure the currency.
Speaking on the current economic situation, de Silva noted that the US Dollar had risen to around Rs. 342, while rates in the unofficial market were reportedly above Rs. 345.He argued that currency markets are driven largely by confidence, and claimed that confidence in the government’s ability to manage the value of the rupee was gradually weakening.
De Silva said recent measures, including an increase in interest rates, had provided only temporary relief before the rupee resumed its downward trend.He also pointed to growing demand for foreign currency as importers begin settling Letters of Credit (LCs) opened before new restrictions. According to de Silva, some overseas Sri Lankans were delaying remittances in anticipation of further rupee depreciation, while certain exporters were also holding back export earnings for the same reason.
