President urges reduced consumption of fuel and imported goods amidst soaring US dollar

President Anura Kumara Dissanayake stated that Sri Lanka is currently facing a severe crisis concerning the US Dollar, noting that the strengthening of the US Dollar against other foreign currencies has directly affected the value of the Sri Lankan Rupee.

The President made these remarks while addressing the “Ratama Ekata” national anti-narcotics programme held in the Batticaloa District today (20).

Addressing the prevailing economic situation, President Dissanayake observed that the tourism industry in Sri Lanka, which remains one of the country’s primary sources of dollar revenue, has experienced a 29 percent decline in tourist arrivals compared to the corresponding period in April last year. He stated that this decline has significantly affected the country’s foreign exchange earnings.

The President further explained that the ongoing global economic crisis has adversely impacted demand for Sri Lankan exports, resulting in a reduction in export-generated foreign exchange inflows. In addition, he noted that remittances from Sri Lankan workers employed overseas had also shown a decline during the month.

President Dissanayake also pointed out that the appreciation of the US Dollar has substantially increased the monthly expenditure incurred on fuel imports, thereby exerting additional pressure on the national economy.

He stated that several measures are scheduled to be implemented in order to address the crisis and emphasized that the country’s economy is currently being managed in accordance with the Extended Fund Facility (EFF) programme established with the International Monetary Fund (IMF).

According to the President, the Government is continuously engaging with the IMF by presenting and discussing proposals aimed at stabilizing the economy and mitigating the prevailing financial pressures.

Highlighting the urgent need to manage the growing pressure on the US Dollar, President Dissanayake stressed that fuel consumption must be reduced and that the public should exercise greater caution regarding the consumption of imported goods.

He further called upon citizens to act responsibly at an individual level in order to minimize the outflow of US Dollars from the country.

“This difficult period will persist for some time longer. However, let us all unite and face this resiliently,” the President stated, assuring the public that the Government would not permit a destructive economic situation similar to that experienced previously to recur within the country.