The FSP has ridiculed a government claim that the Sri Lanka Rupee has become stabilized.
Its education secretary Pubudu Jagoda explained, according to him, what actually is happening to the Rupee, when addressed a party seminar in Kalutara on March 02.
“When the pressure from debt instalments lessens, the Rupee strengthens. Another thing is that the Rupee goes up high against the Dollar once allowed to float. Then, it becomes stabilized at a lower value. That’s what is happening now,” he said.
Jagoda alleged the Rupee was kept at an artificial value in order to allow for the Undial and Hawala rackets, and the entire country is now paying the price for it now.
When the people’s purchasing power declines, the Rupee appreciates, he said, adding that with reductions in the consumption of fuel by 40 percent and electricity by eight pc, the pressure on the Rupee has lessened.
“When the Rupee appreciates against the Dollar as a result, that is not a growth of the economy. That is a manifestation of a collapse of the economy,” the FSP education secretary added.