Govt.'s approach to rupee depreciation ignores general public: UNP

The United National Party critisised ignoring the growing hardships faced by the general public in Government's approach to rupee depreciation.

Issuing a statement today, the UNP stated that while certain export industries will enjoy higher dividends due to the depreciated currency, the employees and the general public will suffer due to the rising cost of living.

"Minister Anil Jayantha has encouraged organisations to present the depreciating currency in a positive light. While many organisations have chosen to remain silent, the Joint Apparel Association Forum has echoed the sentiments of the Minister, claiming that a depreciating currency is a positive sign for the industry."

"The apparel industry was started by the UNP. President J.R. Jayawardena opened up the economy, and encouraged foreign investors to invest and develop the industry. President Ranasinghe Premadasa developed the industries by creating 200 garment factories. These initiatives were operated with the sole purpose of growing the national economy to the benefit of the public. It is disappointing that today the industry has chosen to echo the sentiment of the Minister and the Government, focusing on increasing dividends, while ignoring the growing hardships faced by the general public."

"While exporters in industries such as apparel are predicting increased exports, they have failed to account for shrinking international markets. The European markets are facing growing pressure and will explore options to curb their imports. The United States of America, under President Donald Trump, has stated that their main focus is ensuring Iran does not obtain a nuclear weapon, the economy is not their focus right now. The continued uncertainty over Freedom of Navigation, due to closures of the Strait of Hormuz and attacks in the Red Sea, means shipping costs will continue to increase. This is not a positive picture for the country's export industry."

"In the 20 months since assuming office, this Government has overseen the currency depreciate from 292 rupees, at the time of former President Ranil Wickremesinghe handing over, to 354 rupees today. This is, in large part due to the failure of the Government to continue the economic programme initiated by the former President. The absence of a clear economic plan, alongside their failure to boost our foreign reserves, has resulted in the rapidly increasing rate of the US dollar," the UNP pointed out.

The UNP urges the exporters to look beyond increasing dividends and ensure that the burden of the growing economic hardship is not passed on to their employees.