While most countries attempt to make their exports competitive by depreciate their currencies, Sri Lanka should be very cautious in depreciating its Rupee, says Dr. Harsha de Silva.
The Deputy Minister of Policy Planning and Economic Affairs in the recent interim government, Dr. de Silva says though other countries depreciate their currencies to increase their exports, where Sri Lanka is concerned, such a method may not be suitable.
He says that if the US interest rates begin to increase, then it would be important to consider the Foreign Direct Investments into the country and investments. Hence, caution and planning are needed before depreciating the Sri Lankan Rupee.
Yesterday (25 August) the Central Bank of Sri Lanka allowed the Sri Lankan Rupee to depreciate by about 15 Cents against the US dollar.
