Former United National Party Deputy Leader MP Ravi Karunanayake has warned that continued fluctuations in the exchange rate could undermine the benefits achieved through Sri Lanka’s debt restructuring process.
Speaking to the media, the former Finance Minister stated that even relatively small movements in the value of the rupee against the US dollar could create significant challenges for long-term debt sustainability.
Karunanayake pointed out that Sri Lanka continues to carry a substantial external debt burden, making exchange rate stability a critical factor in managing future repayments and interest obligations.
According to the MP, maintaining a stable rupee is not simply an economic preference but a necessary condition for keeping debt servicing costs within manageable limits.
He urged monetary authorities to manage exchange rate policies with greater transparency and responsibility as the country continues efforts to recover from the economic crisis.
The MP further warned that if exchange rate pressures continue unchecked, the financial gains achieved through debt restructuring could gradually be offset by losses caused by currency depreciation.
His remarks come amid ongoing public debate over exchange rate management, monetary policy decisions, foreign debt sustainability, and the broader direction of Sri Lanka’s economic recovery.
