Rubber sector stresses need for political stability to prevent economic collapse and uncertainty
Urges govt. and parliament to act fast to bring in political stability
Cautions that inaction will further hit exports sector and economy in coming weeks
Says exchange rate, interest rates, and inflation must be brought under some “sanity”
Calls Finance Ministry to implement much-needed reforms to establish confidence
The country’s rubber sector yesterday emphasised that bringing in political stability is the only way forward to resolving the macroeconomic catastrophe the country is facing.
Sri Lanka Association of Manufacturing and Exporters of Rubber Products (SLAMERP) cautioned that losing a day of exports would cost the country about US$ 50 million, and also negatively impact the stability of the labour force.
It also pointed out that the country cannot afford strikes and hartals that are taking place as such are only crippling the economy further, and went on to stress the need for the government and parliament to act fast to bring in political stability.
“It would be an uphill task for the country, if the executive branch and the legislative branch fail to bring in an accepted political structure, within the constitutional framework.
As the Finance Minister disclosed, the country’s usable reserves are below US$ 50 million and with IMF support will only yielding further down the stream, the economy will fall into an abyss in the next few weeks if it is further disrupted,” SLAMERP cautioned.
The association said the export sector, which has been resilient and has done its part, is waiting for the politicians in power and the Opposition to carve out a speedy solution before country’s industries and exports come to a grinding halt.
While appreciating the recent measures by the Central Bank and Finance Minister Ali Sabry for the proposals made in parliament, SLAMERP stressed the need for exchange rate, interest rates, and inflation to be “brought under some sanity”.
“We need these reforms from the Finance Ministry as early as today. Without this confidence in macro-economic policy, no international organisation or investor will take Sri Lanka seriously.”
SLAMERP pointed out that stability and confidence is the key to revive the economic sentiments, and therefore, called upon all responsible in making decisions at political level to deliver the critical decisions both politically and economically if they are to save Sri Lanka’s national interest and its people.