The Hon. Shanakiyan Rajaputhiran Rasamanickam

¶ 01 Hon. Speaker, under Standing Order 27(2), I pose this question to the Minister of Finance, Planning and Economic Development.

¶ 02 From 1 January 2026 to date, the Sri Lankan rupee has depreciated by around 6% against the US Dollar; by 18 May 2026 it had fallen to Rs. 327.60. On the day I submitted this question, the average was Rs. 327. But today, I do not know whether the real average is Rs. 354, Rs. 356 or Rs. 360. This is the weakest level since the 2022 crisis. Bloomberg notes that the Sri Lankan rupee has become the weakest currency in Asia.

¶ 03 Recent rolling-window volatility measures show the rupee is among the most volatile in South Asia. This depreciation correlates with a rapid rise in the cost of living. Headline inflation for April is 5.4%. Amid US–Iran tensions, fuel prices have risen by about 35%; household electricity tariffs by 18%, and I believe electricity charges have actually risen more within this short period.

¶ 04 With official poverty at its highest since 2009, I request clarifications:

¶ 05 1. What specific measures will the Government take in the coming months to protect low- and middle-income households from the combined impact of imported inflation, rupee depreciation, and rising fuel prices?

¶ 06 2. Will the Government introduce additional targeted relief such as expanding “Aswesuma”, transport subsidies for public sector employees, or temporary VAT relief on essential items? If so, what is the estimated fiscal cost?

¶ 07 3. What is the Government’s stance on managing rupee volatility?

¶ 08 4. Given FDIs are critical, what practical steps will the Government take to attract the expected investments in 2026 amid current exchange rate volatility?

¶ 09 5. Will the Government table in Parliament an assessment of the impact on cost of living over the remaining period of the IMF programme?

¶ 10 Hon. Minister, when I submitted this on 18 May, conditions have since changed. I add a small follow-up: Regarding diesel and petrol, my understanding is Government currently subsidizes roughly Rs. 100 on diesel and about Rs. 20 on petrol, imposing pressure on LIOC, Sinopec and RM Parks (Pvt) Ltd (and the Shell-linked entity). Are we asking them to continue selling at a loss in hope of recouping later, or will Government compensate them? If so, from where will funds be sourced—through the Budget or otherwise?