Rupee gains exert double-edged sword impact on economy By Bandula Sirimanna View(s): View(s):The continuous appreciation of the Sri Lankan rupee following Anura Kumara Dissanayake’s assumption of the presidency has brought both positive and negative effects on the nation’s economy, prompting intervention from the Central Bank (CB). Economists believe that while the stronger rupee has benefits, it also presents significant challenges for several sectors, necessitating a balanced approach by the CB to ensure economic stability. Additionally, a stronger rupee boosts investor confidence, as it signals a stable economic environment. Despite these advantages, the appreciation of the rupee poses significant hurdles for exporters, the tourism sector, and households dependent on remittances. A stronger rupee makes Sri Lankan exports, like garments, tea, and rubber, more expensive in international markets, reducing their competitiveness.

Source: Sunday Times October 19, 2024 20:06 UTC