Opposition MP Dr. Harsha de Silva has raised concerns over the recent depreciation of the Sri Lankan Rupee, warning that weakening confidence in the government’s economic management could place further pressure on the currency.
Commenting on the current economic situation, de Silva noted that the US Dollar had climbed to around Rs. 342, while exchange rates in the unofficial market were reportedly exceeding Rs. 345.
He argued that confidence plays a crucial role in determining currency market movements and claimed that confidence in the government’s ability to manage the value of the rupee was gradually eroding.
According to de Silva, recent policy measures, including interest rate increases, had only provided temporary support before the rupee resumed its downward trend.
He also highlighted growing demand for foreign currency as importers begin settling Letters of Credit (LCs) that were opened prior to the introduction of new import restrictions.
The opposition MP further claimed that some Sri Lankans working overseas were delaying the remittance of foreign earnings in anticipation of further rupee depreciation, while certain exporters were also holding back export proceeds for similar reasons.
De Silva warned that such developments could intensify pressure on the local currency, stressing that maintaining market confidence remains a key factor in ensuring exchange rate stability.
