Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando has dismissed the recent depreciation of the Sri Lankan rupee as an economic crisis, saying the slide reflects Middle East-driven fuel demand and short-term dollar pressure rather than any underlying fragility.
Addressing the impact of the Middle East conflict on the Sri Lankan economy, the Deputy Minister said the recent fluctuation in the value of the US dollar was primarily caused by rising fuel prices linked to the conflict and an increase in demand for foreign currency. The rate experienced “a temporary fluctuation within a short period, resulting in an unnecessary increase in the exchange rate over the course of about a week,” he said, but “necessary interventions had been implemented to properly manage the situation,” Ada Derana reported.
The Deputy Minister said Sri Lanka continues to receive the required dollar inflows from exports, tourism and workers’ remittances, and that the recent move reflected normal supply-and-demand dynamics rather than an underlying crisis. He alleged the opposition was presenting the issue inaccurately and “emphasized that the situation has now been brought under control.”
Dr. Jayantha said the US dollar exchange rate “has already returned to the Rs. 330 range” and that normal market operations were helping restore stability. He urged the public not to spread unnecessary information or create undue panic regarding the fluctuation.
The Rs. 330 framing sits below the Rs. 340-plus prints reported by other channels through the week. The USD selling rate at commercial banks crossed Rs. 340 on June 4, and SJB MP Harsha de Silva said the rate had reached Rs. 342 in the official market and Rs. 345 in the unofficial market on June 5 while urging the government to revive a credible local currency settlement framework.
The remarks mirror the line Dr. Jayantha used in his May 21 parliamentary pushback, when he framed the depreciation as global-factor driven and pointed to the IMF, ADB and World Bank disbursement pipeline. The June 5 statement narrows the diagnosis to the Middle East conflict and adds the claim that the rate has stabilised around Rs. 330 even as commercial bank rates indicate continued pressure.
Source: Ada Derana.
