The United National Party has issued a strong statement accusing the government of failing to contain the rapid depreciation of the Sri Lankan rupee against the US dollar, warning that the country is facing a deepening economic crisis.
According to the statement, the rupee has sharply weakened from around 292 per US dollar when former President Ranil Wickremesinghe handed over power approximately 20 months ago, to about 354 today. The party argues that this decline reflects the government’s inability to continue previously initiated economic reforms, lack of a coherent economic strategy, and failure to strengthen foreign reserves. It claims these weaknesses have contributed directly to sustained pressure on the exchange rate.
The UNP further warns that continued depreciation is causing concern among the private sector, with expectations that rising import costs and currency instability will increase the cost of living for ordinary citizens while simultaneously reshaping export earnings. While certain export-driven industries may experience short-term profit gains due to currency depreciation, the statement cautions that this benefit is being offset by weakening global demand and shrinking international markets.
The statement highlights particular risks for export sectors such as the garment industry, noting that while exporters anticipate increased orders, global trade conditions remain uncertain. It points to tightening European markets and possible import restrictions as demand slows. It also references geopolitical and economic developments involving the United States under Donald Trump, stating that shifting priorities away from broader economic control, alongside instability in key maritime routes such as the Strait of Hormuz and the Red Sea, could further increase global shipping costs, placing additional strain on Sri Lanka’s export competitiveness.
The UNP also criticizes narratives suggesting that currency depreciation should be viewed positively for industry growth. It claims that some industry groups have echoed these views while overlooking the broader economic hardship faced by workers and the general public. At the same time, it acknowledges the historical role of the garment sector in Sri Lanka’s economic development, tracing its expansion back to open-market reforms introduced under former President J. R. Jayewardene and later industrial expansion policies under former President Ranasinghe Premadasa.
Concluding its statement, the party urges exporters and industry leaders to look beyond short-term profit gains and avoid transferring the burden of economic pressures onto workers, warning that continued currency instability could deepen social and economic challenges across Sri Lanka.
