Ravi Karunanayake has criticized the response of the Central Bank of Sri Lanka to the recent weakening of the Sri Lankan rupee against the US dollar.
Speaking to the media, the former United National Party Deputy Leader stated that the country’s independent Central Bank should provide clearer explanations regarding the continued depreciation of the rupee.
According to Karunanayake:
- Economic and financial decisions should be guided by practical experience rather than theory alone
- Authorities have a responsibility to protect citizens from economic hardships
- Monetary authorities should provide solutions to pressing economic challenges
The MP pointed out that several factors are affecting the exchange rate situation, including:
- Supply and demand imbalances in the foreign exchange market
- Global economic developments
- External shocks affecting emerging economies
However, he argued that:
“The role of the Central Bank is to protect the country through independence.”
Karunanayake further claimed that:
- The rupee is depreciating rapidly
- Foreign reserves are under pressure
- Financial sector policies have not adequately addressed urgent economic problems
The remarks come amid heightened concern in Sri Lanka over:
- Currency volatility
- Rising import costs
- Fuel and energy price pressures
- Inflation risks
- Foreign reserve management
The Central Bank recently increased the policy interest rate and announced market interventions aimed at stabilizing the currency and controlling inflation pressures.
