Dollar Doesn't Lie !


Despite 'good' economic numbers, Sri Lanka's exchange rate depreciation (from LKR 296 to LKR 306 per USD) reveals deeper economic issues. 

A critical review of the Sri Lankan budget exposes structural flaws, including a lack of growth strategy, the financial burden of non-performing State-Owned Enterprises (SOEs), and a severe debt servicing crisis. 

The article discusses the painful, yet effective, Argentina-style shock therapy as a potential economic solution, contrasting it with the current regime's ideological conflict and lack of expertise. The presence of the International Monetary Fund (IMF) and an independent Central Bank (CB) governor is viewed as a silver lining for fiscal stability. 

Foreign debt default and the LKR-USD exchange rate remain major concerns for Sri Lanka's fiscal situation.

Location: Makumbura, Pannipitiya, Sri Lanka

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