Sri Lanka finally seeks IMF help- rupee depreciation imminent

ADVENTUS

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Sri Lanka informs IMF in writing to provide experts' advice on current economic situation in the island. Sri Lanka expects IMF representatives to visit the country shortly.
Finance Minister Basil Rajapaksa
-Adaderana-

Ros123

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Rupee depreciation wont be possible because government wont agree with it. depreciation will further increase inflation. government will negotiate to maintain it. IMF will be there to help but not to destroy the country

rajini

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Ros123 wrote:Rupee depreciation wont be possible because government wont agree with it. depreciation will further increase inflation. government will negotiate to maintain it. IMF will be there to help but not to destroy the country

For the last oil ship they have paid from the money collected from the black market. The government is not the deciding factor. Its the production and consumption. Government can hold it for sometime but not for so long. First they sold the foreign reserve to keep the rupee. Now no more reserves. Then they restricted imports. Then they restricted money comes through tourists and exports.

Basil also promised to give exact amount give by black market to people repatriates money.
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https://www.youtube.com/watch?v=j295SOvYBF8
from 55 second

Ros123

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Government will do whatever actions to keep USD rate at current level. IMF is there for support a country. As per Mr. Dammika perera discussion in some TV programme he said that how he handled IMF request to remove some concessions when he was BOI chairman . IMF will consider and understand the reasonable request coming from counter party.

rajini

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Ros123 wrote:Government will do whatever actions to keep USD rate at current level.

Yes they will do whatever but now they don't have any options. They have done lot and spend until reserves and dollars come to zero. They don't have dollars to pay oil gas milk etc. If you lives in sri lanka you would know how difficult to find gas and milk. They can buy dollars from kalu kade but kalu kade don't print dollars. It will be over by very soon. Last thing they could restrict is oil. But it will have huge impact on economy.
There is nothing wrong in placing dollar at 300. It will give boosters to exporters.

Ros123

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I think you have some shares in companies making USD such as Expo ....

rajini

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Ros123 wrote:I think you have some shares in companies making USD such as Expo ....

No shares in EXPO. It is highly overvalued.
Yes. I have collected shares making USD since couple of month knowing the rupee crash is imminent.

ErangaDS

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Sri Lanka finally seeks IMF help- rupee depreciation imminent Fe629510

samaritan

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In my opinion Basil has been more diplomatic in seeking IMF advice for consideration and to maintain the relationship in case the need arises but it may be the last option.

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Sri Lanka finally seeks IMF help- rupee depreciation imminent

1 Sri Lanka finally seeks IMF help- rupee depreciation imminent Wed Feb 02, 2022 10:32 pm

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