SLFP calls for swift action to protect rupee

By Chathuri Dissanayake 

In an apparent response to political rhetoric used to deflect pressure on the Finance Ministry caused by rupee devaluation, the Sri Lanka Freedom Party yesterday called for swift action by experts to arrest the situation.

Critical of the statements made by politicians quoting past statistics of rupee depreciation, SLFP spokesperson Mahinda Samarasinghe said that the Central Bank should “do what is necessary to ensure that the rupee doesn’t depreciate any further”. 

“These are all political statements. The Central Bank should do something. If foreign reserves need to be used, do so,” Samarasinghe said, addressing the media during the weekly press briefing held at the Party head office. 

“It is a fact that in 2012, the rupee depreciated by 12%, but putting that forward is not the solution. That may be to jog the memory of the people of this country, but that is not the solution. The solution must be clear from the experts. The Central Bank should come out and say what we should do.” 

Pointing out that although rupee devaluation may help generate competition among export industries, the constraints on imports impacts living standards of the people, Samarasinghe said the Central Bank must intervene now to ensure its value does not depreciate further. 

However, he said that the Central Bank took steps to release some of the funds to help stabilise the rupee value on Tuesday. “But there has to be a permanent solution for this,” he said. 

The coalition Government Member Minister Samarasinghe, however, appreciated Finance Minister Mangala Samaraweera’s call to cut down on luxury imports and buy more products from local industries. 

“We see that Minister Mangala Samaraweera has said to focus more on local products, and that is a good trend. I think it should be encouraged. Local producers and local industries should be encouraged,” he said. 

The Minister also noted that President Maithripala Sirisena at the National Economic Council has already advocated for a control on imports, drawing on examples of how increasing the number of imports has affected the country’s economy. 

“We have pointed out that when the goods are sold by importers to wholesale business entities, the chain goes on increasing the retail price of goods. The Finance Ministry was asked to investigate the issue and give a solution. I think this is what the Finance Minister is also calling for,” he said. 

Samarasinghe also said that the Government should implement a policy where items that are locally produced are not imported, adding that local industries should be protected and encouraged in the future.