Former United National Party (UNP) Deputy Leader and Member of Parliament Ravi Karunanayake says Sri Lanka’s recurring economic crises have historically been driven by balance of payments problems rather than conventional inflationary pressures.
In a letter addressed to President and Minister of Finance Anura Kumara Dissanayake, Karunanayake argued that the country’s economic instability has repeatedly resulted from the depletion of foreign exchange reserves, the persistent depreciation of the Sri Lankan rupee, weak domestic savings, inadequate capital formation, and a heavy reliance on external financing.
The MP emphasized that future monetary policy should place greater focus on strengthening the country’s external financial position rather than concentrating solely on inflation management.
Accordingly, he proposed that policymakers prioritize the accumulation of foreign exchange reserves, encourage domestic savings, promote capital formation, support productive investment, improve export competitiveness, and safeguard the long-term value of the rupee.
Karunanayake further stated that sustainable monetary stability depends not only on controlling consumer prices but also on strengthening Sri Lanka’s financial resilience and productive capacity.
To support his proposals, he referred to the inflation targets and monetary policy frameworks adopted by several advanced and regional economies, arguing that they demonstrate the importance of maintaining strong economic fundamentals alongside price stability.
