Rupee depreciation not an economic crisis, says Deputy Finance Minister

5 June 2026 05:08 pm Views - {{hitsCtrl.values.hits}} 5 Bookmark

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Colombo, June 5 (Daily Mirror) - Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando has dismissed claims that the recent depreciation of the Sri Lankan rupee signals an economic crisis, describing such portrayals as misleading.

Addressing the impact of the ongoing Middle East conflict on Sri Lanka’s economy, Dr. Fernando said the recent fluctuations in the value of the US dollar were largely driven by rising global fuel prices and increased demand for foreign currency.

He explained that the dollar experienced a temporary surge over a short period, leading to an increase in the exchange rate for about a week. However, he noted that the authorities had taken the necessary measures to manage the situation effectively.

Dr. Fernando said Sri Lanka continues to receive adequate foreign exchange inflows through exports, tourism earnings and workers’ remittances, helping to maintain stability in the country’s external sector.

According to the Deputy Minister, the recent movement in the exchange rate was the result of normal market supply and demand dynamics rather than any underlying economic instability or crisis.

Comments - 5

Nihal Perera Friday, 05 June 2026 11:58 AM

Not sure how you obtained your doctorate. Your analysis is way off base. However will be able to convince the majority of our people since they are the ones who voted.

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Michael Richardson Friday, 05 June 2026 12:00 PM

A lot of Sri Lankas working in the middle east have had to come back to Sri Lanka. The government will feel a big shortage of overseas remittances. Also, there are much fewer tourists coming to Sri Lanka.

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RanjithT Friday, 05 June 2026 12:19 PM

Depreciation on its own not an economic crisis. Comrade read economic data. Trade deficit is widening. Trade balance is negative US$ 3.692 billion. Current account that refers to income from goods and services and expenditure from imports and service outflows stands at US$ 0.9 million. It was a surplus from 23 till march 26. What it means is that we do not earn enough exchange to meet import requirements which eventually means we have to borrow or use reserves. Further our primary account also runs at deficit, translate in to simple language we have no exchange to service the interest component of loans/borrowings. Gross official reserves have come down to US$ 6.8 billion. of which US$ 1.4 billion is a swap with China In layman's language we have to borrow to keep afloat. Comrades you got to come out of your ego, accept we are heading towards an economic downturn GDP growth is reduced to 3% which is not adequate to sustain economy and future bond/loan payments.

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Smh Friday, 05 June 2026 12:23 PM

What a fallacy. If the rupee value is decreased or completely lost it has a chain reaction on purchasing power not only for consumers but for the government also to ensure goods and services are available to sustain the country. But don't worry. With this minister's economic understanding the country is in safe hands.

114 8

Saman Friday, 05 June 2026 12:28 PM

Like cholesterol level and heart-attack

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