Rupee will depreciate further if GSP+ is lost; warns Former PM Wickremesinghe

Former Prime Minister and Leader of the UNP, Ranil Wickremesinghe on Sunday (13) said that by losing the GSP+ concession the rupee will depreciate further and and the country will have to pay around 300 rupees per dollar.

He said as reliant on the GSP+ concession, losing it will also lead to the loss of thousands of jobs.

“Our government took action to regain the GSP+ from the European Union to assist in developing the country's economy in 2017. This facility provides Sri Lanka with permission to export goods to Europe without taxation, which led to a boom in the garment and fishing industries," he said.

"Our tourism industry is at risk at this time due to the COVID-19 pandemic. With the sinking of the X-Press Pearl, issues have arisen for our fishing industry as well. The number of people going abroad for employment has decreased. Therefore, our foreign exchange has fallen," Wickremsinghe added.

Sri Lanka borrowed $200 million from Bangladesh due to the economic crisis caused by the decline in our foreign exchange. At present, only the tea and garment industries are able to earn foreign exchange for our country, he warned.

"In the face of the danger that has arisen, the GSP+ must not be politicized. The government should take immediate action to protect the concession. Do not add any more weight to the heavy economic burden that the people are carrying. I urge the government not to destroy the country." said the Former Prime Minister.