The devalued rupee stabilizes again

Professor Wasantha Athukorala of the Department of Economics and Statistics at the University of Peradeniya states that the value of the Sri Lankan Rupee, which had temporarily depreciated in recent days, is now successfully recovering and stabilizing. Participating in a special discussion with the National Radio, he pointed out that although various parties attempted to mislead society by commenting on the temporary depreciation of the Rupee from a political angle, this situation was entirely caused by economic factors.

The professor points out that the most immediate and main reason for this was the sudden increase in demand for US dollars in the market. This situation arose because various information received by the business community about the government's impending imposition of import restrictions led businesses to purchase a large quantity of dollars at once.

In addition, a large amount of foreign exchange has flowed out of the country due to the increase in vehicle imports, and some individuals have held onto dollar reserves with the aim of earning higher profits. He also revealed that the situation was further exacerbated by a shortage of dollars in the market, as even local exporters were prompted to delay bringing their earned foreign exchange into the country, instead holding it in foreign bank accounts.

However, Professor Wasantha Athukorala further confirmed that this entire process was merely a sudden, short-term economic market shock, and its effects are currently subsiding. Accordingly, the value of the Rupee has now returned to a normal stable level.