Devaluation of rupee is increasing public debt burden : UNP

The main opposition UNP yesterday charged that the devaluation of the Sri Lankan rupee at the recent Budget has resulted in the country’s public debt burden increasing by a further Rs. 81 billion, the UNP said yesterday.

UNP MP Ravi Karunanayake said the country’s public debt burden had risen to Rs. 5,200 billion.With the devaluation of the rupee by three rupees, the rupee component of external borrowings will increase by another Rs.81 billion. This is a serious situation, he said. Mr. Karunanayake said the government devalued the rupee to suit the interests of the International Monetary Fund (IMF), and it would have dire consequences on the economy of Sri Lanka. Already, two government ministers - Vasudeva Nanayakkara and Prof. Tissa Vitarana have expressed concern over the devaluation. However, the other government ministers supported the decision saying it would increase export revenue in terms of the rupee value.