Bright Future Despite Rupee Depreciation
By Chrishanthi Christopher
The manufacturing and service sector in the corporate arena expressed optimism for a bright future for local industry following the depreciation of the rupee.
Talking to the Sunday Leader Apparel Industrty Management services chairman, K.C.Vignarajah said that the free float of the rupee is a positive to the Sri Lankan market. “This should have been done four years ago and our country would have had economic prosperity” he said.
Tiger economies like Singapore and Malaysia survived due to the depreciation of the rupee. “And why do you think China’s economy is thriving and prosperous – it is because of its undervalued yuang” he said.
The Ceylon National Chamber of Industries, Secretary General Kumara Kandalama speaking to the Sunday Leader said that although the local industries are hard hit by the fuel price hike and the increase in the electricity tariff the future looks good.
“They are doing the balancing.” He said that the devaluation of the rupee is bringing in more orders and the companies are profiting by increasing the volume of production. However, a spokesman for Ceylon Biscuits Ltd. told this paper that their company has not benefitted by the devaluation. “Our volume of imports on raw material has increased by 45 per cent due to the devaluation of the rupee and our production cost has been jacked up by 22 per cent with the fuel price hike” On the whole he said that it is only a small gain and is watching the markets to increase the price of its products.