US$157.5 mn released within four days to stabilize rupee: Bandula
Posted on October 2nd, 2018
Lahiru Pothmulla Courtesy The Daily News
The Central Bank has released US$157.7 million to the market within four days to stabilise the rupee which stands at Rs.170 against the US dollar, joint opposition (JO) MP Bandula Gunawardana today said.
When the IMF is releasing US$169 million to Sri Lanka as loans, he said the evaporation of US$157.5 million to stabilise the rupee would only result in a further increase in the cost of living.
This move may lead to a price increase of essential items and services such as fuel and bus fares. The rapid depreciation of the rupee is the result of the fiscal mismanagement by the government and there is no point in blaming the Rajapaksa government,” he told a news briefing.
Meanwhile, he said the President had invited him to attend a special discussion on the current state of economic affairs but said he was unable to take part because he had not received the consent of JO party leaders.
He said both the economic affairs meeting and the JO party leaders meeting were scheduled at the same time on Tuesday night.
I cannot attend the discussion on economic affairs without the consent of former president Mahinda Rajapaksa and the other party leaders,” he told a news briefing.
October 2nd, 2018 at 7:07 pm
You have some understanding.
Central Bank and other government practices let hard currency leave the country and then get IMF to give us more that will leave the country.
India and Indian Colonial Parasites are the beneficiaries.
October 2nd, 2018 at 9:38 pm
You have ZERO understanding OR you are fooling people.
What kind of argument is this ?
Are you saying government lost US$157.7 million trying to stabilize rupee ?
Few days back you made huge noise that rupee was going down.
When rupee is under threat, central bank will sell US dollars to buy rupees. That money is not lost but was converted to rupees. Those rupees can still be used within Sri Lanka for projects.
Only problem is without stopping corruption, inefficiency and increasing productivity we loose reserves and rupee will still fall reducing the value of that 157.7 million. That is still not a total loss.
October 3rd, 2018 at 12:06 am
Corruption is not a fiscal policy problem as long as the money stays in the country.
If CB jacking up of the Rupee with IMF hydraulics is going to be spent for daily sustenance as we do now and some of that is used to invest overseas by the corrupt it is the poor in the country who are going to suffer.