Former United National Party Deputy Leader MP Ravi Karunanayake says the government and the public will ultimately bear the consequences of decisions taken by the Central Bank, particularly regarding exchange rate movements and interest rate policies.
Speaking to the media, the MP argued that the depreciation of the rupee and increases in interest rates would eventually increase borrowing costs for the government sector and place a greater burden on citizens.
Karunanayake questioned how an independent Central Bank should respond in such circumstances and whether current monetary decisions are adequately addressing practical economic challenges.
Referring to previous statements made by the Central Bank regarding foreign currency debt exposure, the MP questioned the impact of exchange rate depreciation on institutions carrying dollar-denominated obligations.
He also referred to financial losses reported by state institutions, arguing that the effects of currency depreciation eventually translate into broader costs for public institutions and consumers.
“I spoke previously about the depreciation of the rupee. I also said earlier that interest rates could increase and that certain sectors would face challenges. These are not predictions that require extraordinary knowledge — they require practical experience and economic understanding,” he said.
The MP further argued that policymakers should place greater emphasis on practical economic management and accountability when making decisions that directly affect inflation, borrowing costs, and exchange rate stability.
His remarks come amid continued debate over monetary policy, exchange rate management, and the role of the Central Bank in Sri Lanka’s economic recovery.
