📈 Rupee Depreciation Reflects Global Trends, Boosts Export Competitiveness: JAAF

The Joint Apparel Association Forum (JAAF) stated that the recent depreciation of the Sri Lankan rupee is driven by global pressures—including Middle East instability, high fuel prices, and rising shipping costs—rather than domestic economic weakness. Key Highlights: • Regional Currency Movements: The Sri Lankan rupee depreciated by 4.8% against the US dollar, performing better than regional peers such as the Indian rupee (-6.4%), Nepalese rupee (-6.2%), and Indonesian rupiah (-5.2%). • Economic Impact: JAAF and the Central Bank of Sri Lanka (CBSL) emphasize that a weaker rupee enhances export competitiveness, protects jobs, and strengthens foreign exchange earnings and national reserves. • Apparel Sector Significance: The apparel & textiles sector remains a critical pillar of Sri Lanka's economy, generating approximately US$ 5.00 Bn annually and providing employment to around 350,000 people. • Strategic Outlook: JAAF urges a focus on maintaining market confidence, avoiding speculation, and supporting policy stability to protect Sri Lanka's ongoing economic recovery.