RUPEE FALLS AS CB-FM CONFLICT BREWS

samaritan · 1 RUPEE FALLS AS CB-FM CONFLICT BREWS Wed Feb 22, 2017 11:40 am

samaritan

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RUPEE FALLS FOR 5TH SESSION AS CENTRAL BANK - FOREIGN MINISTER CONFLICT BREWS!
(Mirror Business of Today)
COUNTRY'S ECONOMY IN A SOUP!

sapumal · 2 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Wed Feb 22, 2017 12:13 pm

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Rupee fall doesn't a mater. It is good for contry like SL. Previous approach only bought harm to the country. We have tested it for decades. It is time to exit from the depending rupee without depending the approach.
China , India forcefully devaluate their currency to boost the export to grow the economy. At least for 3 years we need to follow the same approach. Even it fails doesn't matter as depending approach failed us for decades.

samaritan · 3 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Wed Feb 22, 2017 12:42 pm

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sapumal wrote:Rupee fall doesn't a mater. It is good for contry like SL. Previous approach only bought harm to the country. We have tested it for decades. It is time to exit from the depending rupee without depending the approach.
China , India forcefully devaluate their currency to boost the export to grow the economy. At least for 3 years we need to follow the same approach. Even it fails doesn't matter as depending approach failed us for decades.

Hon.Minister of Finance Ravi K thinks otherwise. Is he ignorant?

jayathu · 4 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Wed Feb 22, 2017 2:18 pm

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How come import country like ours it's good rupee getting depreciated???

sapumal · 5 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Thu Feb 23, 2017 9:43 am

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jayathu wrote:How come import country like ours it's good rupee getting depreciated???

Simply imports will be demotivated. Our economy is consumer based economy. We rent,sell our harbors, airports, hotels, valuable lands to foreigners and import goods. This approach only can last until the last land sold to a foreigner.
We can create more jobs by moving into production economy. For an example if we take milk, sugar we pay around 20billions for imports. But we only can produce 3,4 jobs to handling the imports. But if we produce them in here we could produce 40,000 direct jobs with 40,000 income for a month from 20 billion.
Then there would be indirect jobs.

Importers make deals with ministers and take a big profit from importing those silly things. That's how the system works.

jayathu · 6 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Thu Feb 23, 2017 11:46 am

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@sapumal twin deficit country like ours, wont it affect our country adversely deprecating the currency? If you go through CB accounts our Loan borrowing cost has gone up by 25% due to large amount of USD loans we have in our book. We are highly debt ridden country.

eg;- if you take 2015 development bonds were issued at 4.50% per annum for two year bond. Amount of 950Mn USD. Right now for last two yrs rupee has deprecated roughly around 15-18%.
they're going to issue again development bonds again this yr also. Most probably to pay off the maturing developing bonds.
http://www.economynext.com/Sri_Lanka_to_raise_at_least_US$450mn_from_3_year_loan-3-7404-17.html

samaritan · 7 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Thu Feb 23, 2017 12:42 pm

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Agree with Jayathu. Countries like China & India depreciated the currency when those were strong in order to stimulate exports. In our case its not so we already have a weakened currency and imports dependency for essential food commodities will send prices high making situ worse. This is not the appropriate time. Development of local sugar industry is a good suggestion if feasible.

sapumal · 8 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Thu Feb 23, 2017 1:17 pm

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I am not saying depreciate the currency like India, China. But keep it at the right place. Currently it is overvalued.
Depreciation wont be a problem in medium term to long term. When depreciating the currency the negative trade deficit will be narrowed as exports starting to rise and imports starting to decline. When no deficit , currency depreciation will be stopped for ever
With the current approach, imported goods are always have a 10% discount against local products. Local producers will never get a chance to compete with the foreign goods. Again it will pressure the currency and further depreciation is inevitable
People show essential foods but they import luxury items or things we could produce in here

anges · 9 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Fri Feb 24, 2017 1:58 am

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the best way to defend the rupee is by export but we dont manufacture much to export ! plus oil imports are hurting the economy ! energy sector should be encourage through zero tax on sloar panels this may ease the burden on oil imports and encourage many private companies to get into solar for their energy needs ! but leaders are snoring in parliament

sapumal · 10 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Fri Feb 24, 2017 9:30 am

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Look at our imports
http://www.cbsl.gov.lk/pics_n_docs/02_prs/_docs/press/press_20160506e.pdf
Only around 25% is spend for fuel (oil,gas)

worthiness · 11 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Fri Feb 24, 2017 8:44 pm

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No proper investment programs had been launched aiming export oriented industries by utilizing foreign borrowings. Not a surprise to suffer in every segment of economy now.

sureshot · 12 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Sat Feb 25, 2017 8:03 pm

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sapumal wrote:Look at our imports
http://www.cbsl.gov.lk/pics_n_docs/02_prs/_docs/press/press_20160506e.pdf
Only around 25% is spend for fuel (oil,gas)

There is nothing to look our imports.

Even the underwear is imported in Srilanka.... Very Happy

if Tsunami hits Srilanka again , then US$ will fall . No other possibilities.

samaritan · 13 Re: RUPEE FALLS AS CB-FM CONFLICT BREWS Sun Feb 26, 2017 9:32 am

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sureshot wrote:

sapumal wrote:Look at our imports
http://www.cbsl.gov.lk/pics_n_docs/02_prs/_docs/press/press_20160506e.pdf
Only around 25% is spend for fuel (oil,gas)

There is nothing to look our imports.

Even the underwear is imported in Srilanka.... :D

if Tsunami hits Srilanka again , then US$ will fall . No other possibilities.

Also, our major exports is Housemaids! RUPEE FALLS AS CB-FM CONFLICT BREWS Icon_biggrin