The United National Party (UNP) has raised concerns over what it described as the Government’s handling of the Sri Lankan Rupee’s depreciation, warning that the impact of the weakening currency will ultimately be felt by the general public through higher living costs and economic pressure.

Issuing a statement, the UNP said the country is facing a “very serious issue” due to the “uncontrolled depreciation” of the rupee, claiming that during the 20 months since the current administration assumed office, the exchange rate had moved from around Rs. 292 at the time former President Ranil Wickremesinghe handed over office to around Rs. 354 against the US Dollar.

The party alleged that the situation was linked to the Government’s failure to continue economic policies introduced by the previous administration and pointed to what it described as a lack of a clear economic plan and failure to strengthen foreign reserves. According to the UNP, these factors had contributed to the rising value of the US Dollar.

The statement further noted that concerns have already been raised by sections of the private sector over the possibility of continued rupee depreciation amid increasing domestic and global pressures. While acknowledging that certain export sectors may benefit from a weaker currency through improved earnings, the UNP argued that employees and the wider public would suffer due to an increase in the cost of living.

The party also questioned expectations of stronger export growth, particularly within the apparel sector. It said global conditions remain uncertain, citing pressures in European markets and increasing international instability. The UNP also referred to disruptions affecting global shipping routes, including concerns surrounding the Strait of Hormuz and Red Sea attacks, warning that rising shipping costs could negatively affect Sri Lanka’s export sector.

The UNP also criticised recent remarks encouraging organisations to present the depreciation of the rupee in a positive light. Referring to comments attributed to Minister Anil Jayantha and responses from the Joint Apparel Association Forum (JAAF), the party expressed disappointment that sections of the industry appeared to focus on potential gains while, according to the UNP, ignoring hardships faced by the public.

The party further highlighted the historical role played by previous UNP administrations in developing the country’s apparel sector, pointing to the open economy policies under former President J.R. Jayewardene and garment industry expansion under former President Ranasinghe Premadasa. It urged exporters to ensure the burden of growing economic hardship is not shifted onto employees.  (Newswire)

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