‘Depreciating currency value no answer to trade deficit’

Ramani KANGARAARACHCHI

Depreciating rupee or dollar value is not the answer to narrow the sky rocketing trade deficit of the country, Mawbima Lanka Foundation Chairman Ariyaseela Wickramanayake told Daily News Business. Referring to recent media reports on this issue he said the country needs to start producing essential food items immediately instead of depreciating the currency value as people do not get milk, rice, fish or bread to consume by doing it.

He said Sri Lanka can reduce the trade balance by producing milk, rice, fish and sugar locally with available resources while importing only essential items such as oil. The country spends Rs 25 million a month to import canned fish and US$ 400 to import wheat flour at present. Tapping of Kitul trees can produce jaggery to reduce the sugar requirement. Similarly, the country does not need to borrow money for the Hambantota Harbour if all the cows in the country are milked which gives employment to many people to find their bread and butter.

Wickramanayake, who is also the Chairman of Master Divers said that the open economy theory is not suitable for Sri Lanka, and adopting which was a great mistake of the past and the country should not import things just because the exporting country gives it at cheaper prices to get rid of their excess.

Referring to importation of vehicles to the country he said on the average, 47000 vehicles per month have been imported last year which is very unsatisfactory. It is unnecessary to import vehicles with heavy engine capacity at a time the fuel cost is very high. “It is time for all to get together and narrow this 10 billion US$ deficit to develop the country,” he said.