Ravi K tips sharp rise in rupee in two weeks
Wednesday, 24 June 2015
Wednesday, 24 June 2015- Wears soothsayer’s hat and informs Parliament rupee to rise to 130 per dollar in next 2 weeks
- Traders say rupee unlikely to appreciate so quickly
- One dealer sees strong demand for dollars
Reuters: Finance Minister Ravi Karuna-nayake said on Tuesday the rupee was set to climb to a two-year high of 130 per dollar from current levels due to ample dollar inflows.
“Today, the dollar is at Rs. 133.90. We will bring this to Rs. 130 within the next two weeks. There are ample dollars coming into the country,” Karunanayake told Parliament in response to a question raised by the Opposition.
The Opposition has criticised Karunanayake for mismanaging the economy since he came to power after an 8 January election.
Currency dealers said the Government may have knowledge about dollar inflows but said it was unlikely the rupee would appreciate so much within such a short period of time.
If the rupee climbs to 130 per dollar, it would have appreciated 3% to a two-year high.
“It is possible if there are inflows and if those inflows go through the market. He (Finance Minister) may have information what we don’t have. So he may be aware of the inflows,” said a currency dealer asking not to be named.
The rupee’s value is largely decided by the Central Bank as it can direct State banks to buy or sell dollars.
However, another dealer said allowing a 3% appreciation is not possible over such a short period.
“I am not sure if the Finance Minister is being practical. I do not see rupee appreciation given a strengthening dollar, heavy demand for dollars and rising demand for imports.”
The rupee traded steady at 133.90 to the dollar on Tuesday after hitting a record low of 134.20 last Thursday.
“Today, the dollar is at Rs. 133.90. We will bring this to Rs. 130 within the next two weeks. There are ample dollars coming into the country,” Karunanayake told Parliament in response to a question raised by the Opposition.
The Opposition has criticised Karunanayake for mismanaging the economy since he came to power after an 8 January election.
Currency dealers said the Government may have knowledge about dollar inflows but said it was unlikely the rupee would appreciate so much within such a short period of time.
If the rupee climbs to 130 per dollar, it would have appreciated 3% to a two-year high.
“It is possible if there are inflows and if those inflows go through the market. He (Finance Minister) may have information what we don’t have. So he may be aware of the inflows,” said a currency dealer asking not to be named.
The rupee’s value is largely decided by the Central Bank as it can direct State banks to buy or sell dollars.
However, another dealer said allowing a 3% appreciation is not possible over such a short period.
“I am not sure if the Finance Minister is being practical. I do not see rupee appreciation given a strengthening dollar, heavy demand for dollars and rising demand for imports.”
The rupee traded steady at 133.90 to the dollar on Tuesday after hitting a record low of 134.20 last Thursday.
Karu promises higher pension
By Chamodi Gunawardana
Public Administration, Local Governm
ent and Democratic Governance Minister Karu Jayasuriya yesterday said that people who retired before 2006 could gain increased pension from the next month onwards.
Addressing a media briefing yesterday, Jayasuriya revealed that the Government was preparing a new circular which would ensure that a fair amount was paid as pension to all retired senior citizens.
“There was an amount gap between retired senior citizens who retired before 2006 and after it. People who retired before 2006 received a pension which was less than that given to those who retired after 2006. This was because the past Government used the Public Administration Circular No.06/2006 to provide pension,” Jayasuriya expressed.
“Government employees who got pension under Public Administration Circular No. 1997 will benefit from this too,” he added.
Jayasuriya further asserted that the Government would pass the circular regarding this new pension scheme as soon as possible. He also stated that that circular would be implemented within July.
Public Administration, Local Governm
ent and Democratic Governance Minister Karu Jayasuriya yesterday said that people who retired before 2006 could gain increased pension from the next month onwards.Addressing a media briefing yesterday, Jayasuriya revealed that the Government was preparing a new circular which would ensure that a fair amount was paid as pension to all retired senior citizens.
“There was an amount gap between retired senior citizens who retired before 2006 and after it. People who retired before 2006 received a pension which was less than that given to those who retired after 2006. This was because the past Government used the Public Administration Circular No.06/2006 to provide pension,” Jayasuriya expressed.
“Government employees who got pension under Public Administration Circular No. 1997 will benefit from this too,” he added.
Jayasuriya further asserted that the Government would pass the circular regarding this new pension scheme as soon as possible. He also stated that that circular would be implemented within July.
Finance Minister Ravi Karunanayake addresses a media briefing. Buddha Sasana Minister Karu Jayasuriya is also present - Pic by Shehan Gunasekara
We are paying for fiscal sins of Rajapaksa regime: Ravi K
By Chamodi Gunawardana
Finance Minister Ravi Karunanayake yesterday claimed that the Government had to pay back Rs. 305 billion of the budget deficit created by the previous Rajapaksa administration.
Karunanayake said that the Government had gotten a mandate to overcome these financial and social matters which had affected the country during last several years.
“Former President Mahinda Rajapaksa and former Central Bank Governor Ajith Nivard Cabraal have made losses and we should erase those deficits. Some conspirators who back Rajapaksa try to put the blame on us. However, we do not want to put the burden on the general public so we try our best to fill these financial gaps,” Karunanayake said.
He also stated that nobody could defeat the Government by passing no-confidence motions against it.
“The majority Opposition wants to impede our progress but they could not. They brought forward a number of no-faith motions against us. However, I am always ready for any public debate and I accept the request made by Bandula Gunawardena for a TV debate. It is scheduled for 5 July,” Karunanayake revealed.
Finance Minister Ravi Karunanayake yesterday claimed that the Government had to pay back Rs. 305 billion of the budget deficit created by the previous Rajapaksa administration.
Karunanayake said that the Government had gotten a mandate to overcome these financial and social matters which had affected the country during last several years.
“Former President Mahinda Rajapaksa and former Central Bank Governor Ajith Nivard Cabraal have made losses and we should erase those deficits. Some conspirators who back Rajapaksa try to put the blame on us. However, we do not want to put the burden on the general public so we try our best to fill these financial gaps,” Karunanayake said.
He also stated that nobody could defeat the Government by passing no-confidence motions against it.
“The majority Opposition wants to impede our progress but they could not. They brought forward a number of no-faith motions against us. However, I am always ready for any public debate and I accept the request made by Bandula Gunawardena for a TV debate. It is scheduled for 5 July,” Karunanayake revealed.
