Dr. Anil Jayantha would have a point if Sri Lanka 🇱🇰 were China 🇨🇳.

Dr. Anil Jayantha would have a point if Sri Lanka 🇱🇰 were China 🇨🇳.

⭕️ Sri Lanka has an $8 billion trade deficit and total external debt of over $50 billion.

⭕️ A weaker rupee may help sectors like exports in theory, but Sri Lanka imports far more than it exports. Depreciation will result in higher import costs, higher debt repayment costs, more inflation, and greater pressure on the economy.

⭕️ For a debt-ridden, import-dependent economy like Sri Lanka, the combined macroeconomic impact of rupee depreciation is inescapably negative. There is no way around it.

#SriLanka