Former Deputy Governor of the Central Bank of Sri Lanka W. A. Wijewardena has warned that the appreciation of the Sri Lankan Rupee in recent months without supporting ground conditions will kill all exports.
In a Twitter message, Wijewardena pointed out that this will kill all exports, not only rubber.
The former Central Bank Deputy Governor further warned that Sri Lankan migrant workers are to suffer the most as a result of the appreciation of the rupee.
“While inflation is still rising from the base period at 95%, gains by importers will be lost overall,” he added.
Wijewardena’s warning comes after it was reported that the rupee appreciation had severely impacted the local rubber sector in the month of March.
It was reported that according to the Forbes & Walker commodity brokers, the strengthening of the Sri Lankan rupee has created uncertainty among buyers.
As a result, all the grades went unquoted during the March 8, 2023 sale. The price of L.CR 1Xs and 1s eased sharply from Rs.625 to Rs.500 whilst No. 2s declined and settled at around Rs.400 by the end of March. (NewsWire)