Rupee to stabilize with govt’s measures to address the issue’
The rupee will stabilize below Rs 125 against the US dollar as the
government has taken serious measures to address the underline imbalance
of the economy. Stabilization of the rupee could be seen in the near
furniture, Secretary to the Treasury Dr P B Jayasundara said at a press
conference held on Monday. “The exchange rate is driven by speculation.
However, there is no reason whyit should not stabilize below Rs 125 once
the measures taken by the government begins to take effect. With
measures such as the adjusting of fuel and electricity prices, imposing
of higher import tariffs together with revising the monetary policy
twice in the last few months, is expected to bring stability to the
economy,” he said.
Dr P B
The Treasury Secretary requested the media to be more positive and
responsible when reporting as irresponsible reporting in the form of
incomplete and half truths gives rise to speculation.
Quoting examples from the region, he requested to take a leaf from
financial reporting of the region’s newspapers in China, India and
He pointed out that current economic status of these countries is
reported positively in comparison to the world. This makes the report
more holistic he said. Responding to a query on government waste he said
that a certain percentage of waste is present in any country and also
certain incidents are reported out of context without showing the whole
picture which gives rise to misinterpretation of the progress made at
Quoting an example, he said that motor accidents on the expressway
are reported without considering or showing that 500,000 vehicles have
been added to the road network last year alone, taxing the already
overburdened road network which at any time has a percentage of
Speaking of large economies such as the USA and India which
considered to having best minds and leading qualified economists at the
helm, he said that they too have not fared well either.
“Government projects will give dividends in the long run. There may
be certain delays in large projects taking off. These minor alterations
of dates are not an alarming factor.
When considering the status of the economy, dispelling doubts created
in the minds by frivolous reporting he said that at no time have we
defaulted loans obtained.
Due to this fact there has not been any difficulty in raising funds
as the country has a proven track record of servicing its debts on
time,” he said. Even now, our capability of securing debts has not
diminished in any sense,” the Treasury Secretary said.
The government is considering $ 500 million sovereign bond as the
existing bond will mature in August. The bond will be re-positioned and
the Central Bank is making every possible measure to manage this task.
The funds will be utilized to retire foreign debts and could be
considered as debt neutral,”he added.