So what has happened to date is that the Rupee has depreciated about 6.5%, which, relative to historic norms, is not a large amount. Movements in current account debits and credits create supply and demand for foreign exchange – it does not necessarily have to be in US Dollars. However, the issue of the Rupee’s depreciation is unique to the Sri Lankan economy, and thus the solutions to this issue will depend on the context of Sri Lanka, according to Prof. Bandara. He also opined that the prevailing pandemic has created a political and financial crisis that Sri Lanka has had to deal with. He is of the opinion that Sri Lanka should employ the talents of those who are capable of actually changing this situation.

Source: The Nation July 15, 2021 18:00 UTC