BY EDWARD THEOPHILUS

The value of Sri Lanka rupee (Domestic and Foreign Values) is based on the success of policy action relating demand and supply of the rupee for various purposes. People need to understand that demand and supply values of Sri Lanka rupee would be based on several factors and the policy makers should clearly understand these factors and develop effective policies for the country and implementation of such policy actions would be the way improvement of the value of the Sri Lanka rupee. What are the policy actions.

• Development of foreign reserves of Sri Lanka to more than US $ 10 billion and beginning of repayment of loans without affecting the reserves.
• Taking strict policy actions to balance the government budget, this may be related to fixing tax policy to gain about 80% the government revenue from taxes and other 20% from the excess of government business. The concept of deficit budget may be useful to the country, but the policymakers arrange actions to get away from the idea. Why the Sri Lanka is hanging on budgetary policies created by J.M. Keynes long time ago?
• The two major accounts of the balance of payment, (Goods and Services and Investment) should arranged to gain excess and overall balance should be balanced without debt for balancing the budget.
• Improvement of earning from Tourism and exports using traditional and non-traditional actions.
• Bring the earning from foreign employments and develop various services to foreigners to make more income to the country.
• Develop international IT services to sell foreign countries
• Eliminate corruptions in the country and transfer politicians to support policy development and improvement, but not for consuming such services.

If successfully develop policies for above points Sri Lanka rupee would be radically increased its values and people would be prosperous.