BY EDWARD THEOPHILUS

When Sri Lanka ended the ethnic war in fourteen years ago, many analysts believed that the decline in military expenses would improve the economic prospectus of the country. Tourism business and merchandise exports would be positively supported to an increase in external value of the Sri Lanka rupee, but such an outcome couldn’t see during the past 10 years.  However, now many analysts attempt to explain that the external value of Sri Lanka rupee is improving, and these analysts detailed various reasons for the sudden improvement of the Rupee value, but they are reluctant to talk about the influence of a de-dollarization campaign in the world.

The sudden improvement of the external value of the Sri Lanka rupee associate with several factors and it is a macroeconomic consequence and all factors relate to this economic consequence cannot be openly discussed because macroeconomic factors exist in a broad range of area, sometimes, they may not be taken into account and many factors are hidden and the value of factors influencing need to be mathematically calculated.  The best action is to conduct mathematical research that identifying factors and calculating the relationship between factors and the value of the improvement of the external value. A multi-correlation investigation would be an excellent method and many analysts have not done such detailed research and express views.

According to international news, de-dollarization may have a strong relationship with the improvement of the external value of the Sri Lanka rupee, but this truth is not subject to public speaking of many analysts who gain benefits from the Western funded research institutes.

De-dollarization and many embargos for Russia might be influenced to improve the external value of currencies of developing countries.  After the conference of the BRICS could be known about this and financial analysts in Sri Lanka should not scare to express independent opinion.