Deputy Finance Minister Anil Jayantha Fernando says the recent increase in the US dollar exchange rate does not indicate that Sri Lanka is facing an economic crisis, urging the public not to be misled by what he described as false and misleading claims.
Addressing concerns over the depreciation of the rupee, Fernando said the recent movement in the exchange rate was linked to external shocks, including developments in the Middle East, which had increased demand for US dollars, particularly for imports.
Fernando stressed that an economic crisis would involve far more serious conditions, such as shortages of goods, disruptions to production, labour unrest, and an inability of the Government to finance its expenditure.
“None of those conditions exist today,” he said.
According to the Deputy Minister, Sri Lanka’s export earnings, tourism revenue, and foreign remittances have all continued to increase. However, demand for dollars in the market had temporarily outpaced supply, contributing to the recent rise in the exchange rate.
He also pointed to the recent disbursement of approximately US$695 million from the International Monetary Fund (IMF), saying the funds had strengthened the country’s reserves and supported external sector stability.
Fernando said that after the dollar briefly exceeded Rs. 350, the exchange rate had eased to around Rs. 330 following policy interventions and action by the Central Bank. While there had been a slight increase again in recent days, he expressed confidence that the market would gradually stabilise.
He urged the public not to panic or make decisions based on misinformation, maintaining that the current situation was a temporary market adjustment rather than a sign of economic collapse or a balance-of-payments crisis. (Newswire)
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