Handover govt if unable to prevent depreciation of rupee - MR

Former President Mahinda Rajapaksa today said that the government should resign if it is unable to prevent the depreciation of the Sri Lankan Rupee.

Speaking during a press conference held in Colombo with regard to the present economic condition in the country, he alleged that the main reason for Sri Lanka’s economic woes was due to the absence of proper leadership in the incumbent government.

“This is because the president and prime minister are clashing. They clash in the open. As long as instability prevails no investor will come,” Rajapaksa said.

Rajapaksa said that when he handed over the government, the rate of the US Dollar was around Rs 131.40 and that now it has surpassed Rs 170.

He was referring to the Sri Lankan rupee hitting an all-time low this week against the US dollar, reaching near the 170 mark. “When we left (in 2015) the dollar was 131.40,” the former president said.

As a result of the rupee’s depreciation, Sri Lanka’s external debt had jumped, he said. “In 2014 (his last year) the external debt was Rs 7,391 billion or 71 per cent of the GDP. Now it has risen to 87 per cent. Interest payment was Rs 443 billion and now it has risen to Rs 820 billion, almost doubled”.

He stated that if the ruling party is unable to prevent the depreciation of the Sri Lankan rupee, the government should be handed over back to them.

Rajapaksa said if he was in power he would have better managed the currency issue. He charged that the government has run short of ideas as to how to manage the economy.

“Hold elections and give us power we will show you how. I have proved myself before,” he said.

UPFA MPs Wimal Weerawansa, Udaya Gammanpila and former Central Bank Governor Ajith Nivard Cabraal were also present at the press briefing.

-with inputs from agencies