📈 UNP Raises Alarm Over Rupee Depreciation and Economic Direction

The United National Party (UNP) has expressed strong concerns over the rapid depreciation of the Sri Lankan Rupee, attributing it to the Government’s deviation from the economic roadmap established by the previous administration. • Currency Performance: The rupee has depreciated from Rs. 292 (at the time former President Ranil Wickremesinghe left office) to Rs. 354 today, reflecting a significant drop over a 20-month period. • Key Drivers: UNP highlights a lack of a clear national economic plan, failure to boost foreign reserves, and escalating global pressures including the Middle East conflict, Red Sea shipping disruptions, and a strengthening US dollar. • Sector Impact: While the apparel & textiles sector and other export industries may see higher short-term dividends from a weaker currency, the UNP warns they face shrinking international demand in European and US markets. Rising shipping costs due to maritime instability continue to threaten the export industry's outlook. • Socio-Economic Concern: The UNP criticized government statements and industry bodies presenting the depreciation positively, warning that the general public and employees will suffer from an escalating cost of living. Exporters are urged to shield workers from growing economic hardships.