Friday May 22, 2026
Friday May 22, 2026
Friday, 22 May 2026 00:23 - - {{hitsCtrl.values.hits}}
The United National Party (UNP) yesterday raised concerns over the recent depreciation of the rupee, arguing that the Government had failed to maintain the economic program initiated under former President Ranil Wickremesinghe, as external pressures linked to the Middle East war, rising shipping costs, and a stronger US dollar continued to weigh on the currency.
The UNP said: “The Government of Sri Lanka is facing a very serious issue of an uncontrolled depreciation of the rupee.
“In the 20 months since assuming office, this Government has overseen the currency depreciate from Rs. 292 at the time of former President Ranil Wickremesinghe handing over to Rs. 354 today.
This is in large part due to the failure of the Government to continue the economic program initiated by the former President. The absence of a clear economic plan, alongside their failure to boost our foreign reserves, has resulted in the rapidly increasing rate of the US dollar.
“The private sector has expressed concerns that the rupee will continue to depreciate in the face of mounting pressure, both domestically and internationally. While certain export industries will enjoy higher dividends due to the depreciated currency, the employees and the general public will suffer due to a rising cost of living.
“While exporters in industries such as apparel are predicting increased exports, they have failed to account for shrinking international markets. The European markets are facing growing pressure and will explore options to curb their imports. The US, under President Donald Trump, has stated that their main focus is ensuring Iran does not obtain a nuclear weapon; the economy is not their focus right now.
“The continued uncertainty over Freedom of Navigation, due to closures of the Strait of Hormuz and attacks in the Red Sea, means shipping costs will continue to increase. This is not a positive picture for the country’s export industry.
“Minister Dr. Anil Jayantha Fernando has encouraged organisations to present the depreciating currency in a positive light. While many organisations have chosen to remain silent, the Joint Apparel Association Forum has echoed the sentiments of the Minister, claiming that a depreciating currency is a positive sign for the industry.
“The apparel industry was started by the UNP. President J.R. Jayawardene opened up the economy and encouraged foreign investors to invest and develop the industry. President Ranasinghe Premadasa developed the industries by creating 200 garment factories. These initiatives were carried out with the sole purpose of growing the national economy to the benefit of the public. It is disappointing that, today, the industry has chosen to echo the sentiment of the Minister and the Government, focusing on increasing dividends while ignoring the growing hardships faced by the general public.
“We urge exporters to look beyond increasing dividends and ensure that the burden of the growing economic hardship is not passed on to their employees.”
