Subscribe

Mangala warns of further depreciation of rupee

2018-09-21 05:21:33
43
11624

Finance Minister Mangala Samaraweera yesterday warned of a tendency of a further rupee depreciation against the US dollar within the next few weeks.

He told parliament that not only the Sri Lankan rupee but also currencies of most Asian countries had depreciated during the recent past.

"Sri Lankan rupee has depreciated by 7.4 per cent while Indian rupee has depreciated by 13.5, Pakistan rupee by 12.1 per cent, Indonesian rupiah by 9.1and Russian ruble by 18.2," he said.

He said the value of the rupee was determined by the foreign exchange market and primary determinants of the demand for currency are import and export of goods and services and added that these basic indicators remained positive in the case of Sri Lanka.

"These indicators are moving in the correct direction," he said.

Mr. Samaraweera said in a move to control the outflow of foreign currency, the Central Bank on Wednesday imposed a 100 per cent cash margin requirement for LCs on non commercial vehicles with immediate effect.

"There was an influx of vehicles below 1000 cc during the recent past. New cash margin requirement for LCs would reduce the import of vehicles at this juncture. India has imposed regulations on non essential luxury items as well," he said.

He said imposition of minimum tax on vehicles less than 1000 cc and market determinant fuel price formula had been successful in curbing excessive import growth thus far.

He said it was wrong to term the depreciation of the rupee as a collapse of the economy.(Ajith Siriwardana)


  Comments - 43

  • Arnold Friday, 21 September 2018 05:55

    If there was a decent public transport like in Singapore, there will be no need for any 1000 cc cars. We are taxed like in Singapore but we have no facilities like in Singapore.

    Reply : 1       116

    Riza Friday, 21 September 2018 06:12

    Without children what do they care on a next generation, sell the country, eat drink and be merry.During MRs time (NR and BR of course ran riot) however PB balanced the books even with a war.However these guys are so useless, no law and order, nothing happens, no foreign investment is coming in due to the useless BOI board full of corrupt cronies.

    Reply : 33       75

    JVPer Friday, 21 September 2018 06:29

    This si something we agree with you minister. We need this country to go to hell with the damage that 62 million people did..

    Reply : 9       46

    ANTON Friday, 21 September 2018 06:32

    BUT THE OTHER ASIAN COUNTRIES DID NOT INCREASE THE PRIZES OF ESSENTIAL GOODS. LOOKS LIKE YOU ARE ALSO DEPRECIATING.

    Reply : 6       45

    Arnold Friday, 21 September 2018 07:28

    We are taxed like in Singapore. How come we can keep our currency strong like that of Singapore?

    Reply : 2       31

    Karu Friday, 21 September 2018 07:30

    Ecconomy will not collapse as we don't have anything as such.

    Reply : 3       40

    mnsmart Friday, 21 September 2018 07:33

    You tell, we hear

    Reply : 2       20

    Karu Friday, 21 September 2018 07:42

    Ecconomy will not collapse as we don't have anything as such.

    Reply : 0       20

    Harini Friday, 21 September 2018 07:43

    Maybe not for the 10% of the country's rich people. But it certainly is a collapse in the economy of about 60 - 70% of the population who are struggling to survive.

    Reply : 1       35

    Ram Friday, 21 September 2018 07:51

    Hon. Minister, well, we knew this three weeks ago...but for you to say it now...i think you too are following the foot steps of our His Excellency....responding after reading newspaper.......nevertheless you all can have your own "Thamasha" until 2020......Once again thank you for the increased fuel price, sugar price, more income tax and keep inflating the expenses of our useless minister and their stoogies....

    Reply : 1       30

    Asoka Herath Friday, 21 September 2018 08:05

    Mr Minister,You need to look at this more seriously and at least bring some effective controls to stop the outflow of USD , consider some controls for imports of non essentials, as controlling vehicle imports with 100% LC alone will not work. Some short term preventive action has to be taken even if its hurts for some segments of the society

    Reply : 0       18

    What is the Point of Warning Friday, 21 September 2018 08:09

    What is the Point of Warning? Correct it by stopping Luxury life of the Politicians ( from Parliament to Local Councils ) ….Which include Unnecessary Group Foreign Tours . Import of Duty Free Cars. Buying Rose Toilet Fittings .. Issuroo Chairs ect the List goes on.Increase the Export income

    Reply : 0       39

    Premalal Friday, 21 September 2018 08:14

    It is no secret that we are spending too much without creating wealth. This primarily is the reason for the attack on the currency. However the biggest culprit for such spending is the government itself. USA with 400 million people has 2.8 million federal employees. Sri Lanka with 21 million has 1.5.million government employees. So the spending goes on. Now we can see demand for increased wages and the vicious circle will go on. We are in a race to the bottom.

    Reply : 0       32

    Soysa Friday, 21 September 2018 08:19

    A simple google search on the exchange rates of the above mentioned countries for the last month will reveal that it is quite self evident that he is misleading the public.

    Reply : 9       23

    sss Friday, 21 September 2018 08:20

    And then he went to order another duty free car on Housemaid earned dollars. Big ruppe earning politicians and professional are living middle income country life style using housemaid dollars, that is the reason for this huge demand for dollars

    Reply : 1       15

    Abu Umar Friday, 21 September 2018 08:41

    Instead of taking reactive measures, why not take some pro active measures to control non essential imports at least on a temporary basis. A ban of non essentials for about 6 month or 1 year will do more good than bad on the long run.

    Reply : 1       17

    Kapila Friday, 21 September 2018 08:50

    Open economy has failed to produce anything for the country. UNP always advocate to further liberalise the economy, never ever had a vision, or concern over local products. All pundit: Ranil, Harsha de Silva, Eran blindly follows the theories in the books, never tried to adopt hem to suit our country. These guys are educated fools. Miracle maker Ranil has failed( UNP and SLFP policies).

    Reply : 12       24

    fareed Friday, 21 September 2018 10:47

    So what is your vision? Can you go against the tide.

    Reply : 12       8

    Jiff Friday, 21 September 2018 11:45

    @fareed open economy with national interests first is the way to go. Look at China, Russia, Korea, Japan, etc

    Reply : 3       10

    Action? Friday, 21 September 2018 09:18

    You all are still in POWER. So, What strategic action your "GOVERNMENT" is going to take to arrest this trend?

    Reply : 0       14

    Lord Wolfstein Friday, 21 September 2018 09:25

    The Sri Lanka Rupee has always been overrated in recent years. So slowly the rupee comes to its true value.

    Reply : 4       18

    People Friday, 21 September 2018 09:40

    Please resign from your Position as Minister

    Reply : 6       22

    Citizen Friday, 21 September 2018 09:55

    What a lame explernation for been incompetent and for adopting wrong policies. Only the general public will feel the difficulties of these incompetent acts of you all Hon. Minister. Certainly not you all..

    Reply : 2       15

    Jerry Friday, 21 September 2018 10:00

    Trump is doing whats right for his economy and we are aware of the impact of this globally. However, have we done enough to reduce unnecessary imports that happen for commissions? Are we allowing only the mandatory goods to be imported? Starting from Toys to pepper there are hell a lot of goods that could be banned/highly taxed if we properly identify whats necessary. This will reduce imports and our currency value will go up. World is volatile and you are not paid to give EXCUSES!! but to manage them effectively. At least think like a Sri Lankan Trump and see how we could control this!!!!

    Reply : 1       13

    Rasheed Friday, 21 September 2018 10:22

    First control the import of luxury vehicles like Benz , BMW and Prados. Your 100% margin will not do anything.

    Reply : 0       16

    fareed Friday, 21 September 2018 10:51

    Luxury imports and other imports yield huge tax. that helps the country.

    Reply : 5       5

    Rasheed Friday, 21 September 2018 13:25

    Yes, tax helps the country, what about the dollars you pay as foreign exchange?

    Reply : 0       10

    Nash Friday, 21 September 2018 11:10

    Mr Mangala! The rouble recovered significantly this week. However, the rupee fell considerably

    Reply : 0       7

    Dan Friday, 21 September 2018 11:13

    This UNP government is only capable of accusing MR for everything...They don't know how run a Country or how to manage the economy..for everything happens their excuse is MR...if MR is responsible for everything for GOD sake give the government back to MR, so at least he has a chance to show what he could do...

    Reply : 9       14

    Unchikun Friday, 21 September 2018 11:37

    This was what I was dreading to hear and agree to his Inability to steam the free fall. Now all tax free imports of luxury cars need to be stop. Go for A tax free nano. Walk the talk, if not get out and get Harasha or Eran to pilot the ship.

    Reply : 3       8

    Bilal Ahmad Friday, 21 September 2018 20:07

    Unkitchen, he's "steaming" the fall alright. What he should do is to stem that.

    Reply : 0       2

    Hesh Friday, 21 September 2018 11:48

    We need proffesionals to run the economy. During Mahinda's time Basil tried to interfere with everything but there was Dr P.B Jayasundara to balance everything. The first thing these donkeys did was to kick out P.B Jayasundara.Now it's Ranil, Mangala and Malik running everything like qualified Economists.

    Reply : 5       17

    Shelly Friday, 21 September 2018 11:49

    But my tution master do not want to accept any thing and only wants Mahida.

    Reply : 4       6

    Thanos Friday, 21 September 2018 11:50

    My advice to people is to invest a little a bit of their money in precious metals. It won't give you a profit but it is a hedge against inflation especially if the rupee crashes.

    Reply : 0       3

    wiilwsod Friday, 21 September 2018 12:09

    Reduce the luxuries of all the 225 MP's plus all the PS, PSs and so on very simple, no more duty free permits and so on?

    Reply : 0       4

    Nadaal Friday, 21 September 2018 12:16

    No children and nothing to protect for the future. Engage in unusual behavior patterns and with the demise of the PM Mangala Malik and sagala their generations are over. Curse the selfish nincompoops.

    Reply : 1       7

    Wise Donkey Friday, 21 September 2018 12:27

    So our currency is going to like papers, no value.

    Reply : 0       5

    Sanath Friday, 21 September 2018 12:52

    We must curse the politicians andcorrupt officials for the present chaotic state of the country. They get all free and also rob right and left leaving the public in the lurch.

    Reply : 0       5

    nevil Friday, 21 September 2018 12:59

    This goverment only they have three opections,1)Increase taxes,selling the assets,and incresse interest and price increase of pricrs to cover up the ministets expenses,No body think of the salary of private secetor.Useless rulers,no vision,no proper planning.what they telling no body care.

    Reply : 0       6

    Upali Wickramamsinghe Friday, 21 September 2018 13:03

    Minister Mangala, this is the final nail of all the damage done to the economy by govts of all parties since 1977.The worst period was 1977 - 2005, when ever public enterprise was sold for the catchers to close them and sell them brick by brick. They killed private sector too.This govt is said to have imported Tabs for the students and teachers without assembling them here.The "Enterprise Sri Lanka" is another farce, at the end the lower income groups will have to pay the price of the failure of the projects.Use your head, go for biofuels and cut down on the biggest quantum of imports- fuel.No govt since 1977 was interested in substitutes for oil. If they did we would be flourishing in money.Your govt killed the Paddy cultivation because an idiot said so.Somebody had praised P.B.jayasundara. He is and was a part of this problem.He is damn swollen headed joker who helped to ruin this economy through 1994-2015.

    Reply : 2       5

    SUMANA Friday, 21 September 2018 13:06

    MR Manuals here in SRILANKA UNLIMITED FREEDOM Available every corner all MPs living in LUXURIOUS LIFE while MASS people's undergoing untold difficulties Government poor performance in duty free vehicle stealing every where No one there is to stop all these nonsense

    Reply : 0       2

    Haramanis Friday, 21 September 2018 14:34

    Rupee depreciates - ministers gallivant overseas, pachapathy lies - people suffer, who cares???

    Reply : 0       1

    Sunil P Perera Friday, 21 September 2018 14:50

    Being a barber and a tailor how can you comment on such advanced financial issues...?? On the other-hand Bandula G is a professor of economics and his views have more value. You can comment on the lines of fashion, hairstyles etc etc will carry more weight...you are harming my country.

    Reply : 4       4

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Name is required

Email is required
Comment cannot be empty