Former Parliamentarian Ravi Karunanayake has stated that the country’s debt burden has increased by Rs. 1.1 trillion (1100 billion) due to the depreciation of the rupee.
Addressing a media briefing, Karunanayake pointed out that although the Central Bank Governor had previously stated on behalf of the government that the rupee would be protected and that there would be no issue with reserves, that situation has now completely changed.
The MP emphasized that the burden placed on the people due to the rupee’s value falling to 322 is immense.
He noted that every time the rupee depreciates by one unit, an additional burden of Rs. 40 billion is added to the budget, and overall, this has created an additional debt burden of Rs. 1100 billion.
Commenting on the decline in reserves, the MP stated that the reserve level, which previously stood at 7.2 or 7.8, has now fallen to 6.8. He questioned whether the Central Bank’s previous claim that there was no problem with the rupee or reserves remains valid today.
Karunanayake alleged that although the best strategy for repaying debt is to encourage investment, the government has not shown proper interest in this regard.
He also pointed out that due to the ongoing crisis in the Middle East, approximately US$ 150 billion has flowed into Singapore from countries such as Dubai. Given Sri Lanka’s geographical position, the country has missed the opportunity to benefit from that situation.
The MP further stated that he is revealing these facts not to gain political advantage but to report the country’s true situation, and that the public is now beginning to understand whether the answers previously given by the Central Bank Governor were truthful.
