Stemming economic crisis — CB, 3 ministries to work out strategies
Posted on October 2nd, 2018
Yohan Perera Courtesy The Daily Mirror
The Ministries of Finance, Development Strategies and International trade and Trade and Commerce and the Central Bank will, within a week, decide on the steps to be taken to keep the rupee stable in the wake of the global economic crisis, sources close to Prime Minister Ranil Wickremesinghe said yesterday.
They said he had directed the three ministries and the Central Bank to work out strategies to minimize the effect on Sri Lanka from the fallout of US sanctions on Iran and the trade war between the USA and China.
The sources said these strategies would be implemented no sooner the Prime Minister returned from Norway.
Meanwhile, the economic experts have informed the government that Sri Lanka’s tea exports might come to a standstill when the US sanctions become effective in November this year and that China was unlikely to lend funds to Sri Lanka as a result of high tariffs imposed on its exports by the US.
October 2nd, 2018 at 6:45 pm
Our Rupee is dependent on some extent to the foreign cash brought in to the country in notes and then deposited in the banking system. Is there is a decline in such transfers?
It appears that there is a decline in such transfers and that foreign currency is leaving the country.
My observation is based on the black market rates of foreign currency rates compared to official or legal trade.
So there must be lots of Rupee rich buying foreign currency in the black market and sending it overseas to investment.