Is Ravi Karunanayake’s Perception Unacceptable?
By Hema Senanayake –September 11, 2015
Hema Senanayake
Sri Lanka’s rupee … is hovering near a record low after being floated by the central bank last week, (Reuters). Today that is on September 10th Ravi Karunanayake the Minister of Finance has admitted indirectly that rupee has depreciated to an unacceptable level. That is why he told Reuters that, “We will ensure that before too long it will be brought back to an acceptable level.” What should be the acceptable value for rupee? He did not comment for this question. Good, let us leave it there.
But he told parliament on or around June 23rd that, “Sri Lanka will strengthen the rupee to 130 to the US dollar in two weeks from the current 133.90 to the US dollar” (Economynext). Opposite of his prediction proved right by now, not after two weeks from his above comment but nearly after 10 weeks. Instead of strengthening the rupee, it is depreciating. Now, let me quote something published on June 19th.
“… if Arjuna Mahendran thinks that market forces should determine the exchange value of the rupee, then this particular view might transcend into the general thinking of the CBSL staff resulting them allowing the rupee to float freely. If this happens most likely we will see the rupee which depreciates on a continuing basis.” (Hema Senanayake, June 19, 2015)
Please compare what Ravi Karunanayake has uttered and what the above named writer wrote on June 19th. Perhaps, Colombo Telegraph readers might clearly understand now that not only the value of rupee is unacceptable but also the shear perception or knowledge of Ravi on these matters is not acceptable.
