Debt repayment priority, not rupee depreciation, says Mangala

23 October 2018 10:50 pm Views - 4405

The government’s priority at the moment was debt repayment and not countering currency depreciation as it was a common phenomenon experienced by many emerging and frontier economies, Finance and Mass Media Minister Managala Samaraweera said today.

Addressing a news briefing at the ministry premises, he said the government was more concerned about repaying the debt pile it inherited rather than being anxious about the rupee depreciation.

“Some groups raise the point that rupee depreciation has led to a serious economic quandary in the country. However, I should say that rupee deprecation does not reflect the downfall of the country’s economy,” Samaraweera stressed.  

 “The economy would deteriorate, if we failed to settle our debts. But when it comes to rupee depreciation, it is not at all a strange phenomenon. As far as today’s economy is concerned, rupee deprecation is not a serious issue that requires plenty of attention,” he added.

The rupee has depreciated over 12 percent over the US dollar so far this year. A sharp depreciation of the local currency has implications to the all aspects of people’s lives since Sri Lanka is an import-dependent economy.

The rupee depreciation also adds to the debt burden as Sri Lanka has significant amount of dollar debt. (Sheain Fernandopulle)

 

 

 

 

Pix by Damith Wickramasinghe