The Joint Apparel Association Forum (JAAF) yesterday asserted that the depreciation of the Sri Lankan rupee must be examined taking into consideration wider global pressures, including the West Asia conflict, resulting in a sharp increase in global fuel prices and increasing shipping costs.

JAAF in a statement said that a weaker rupee should not be interpreted as a sign that Sri Lanka’s economy was underperforming.

This position is also consistent with recent comments by Central Bank Governor Dr. Nandalal Weerasinghe, who noted that exchange rate movement alone cannot be used as the sole measure of the country’s economic health, as currency depreciation has a number of positive implications.

The Central Bank Governor has also pointed out that Sri Lanka is not facing this pressure in isolation. In recent weeks, the Indian rupee has faced renewed depreciation pressures driven by higher oil prices, persistent capital outflows, and a stronger US dollar.

While the Sri Lankan rupee has depreciated by 4.8% against the US dollar, the Indian rupee has depreciated by 6.4%, the Nepalese rupee by 6.2%, and the Indonesian rupiah by 5.2%, the statement said.

This shows that currency depreciation is currently a global and regional phenomenon, unlike in 2022, when Sri Lanka’s exchange rate pressure was driven by a domestic economic crisis.

“The current movement of the rupee must be understood within the correct context. This is not a Sri Lanka-specific situation. Global factors, including instability in the Middle East, higher fuel costs and rising shipping costs, are placing pressure on currencies across emerging and developed economies alike. India and several other countries are also seeing their currencies depreciate, which shows that this is part of a wider global adjustment,” said Felix Fernando, Chairman of JAAF.

Fernando added that a weaker rupee, if managed with stability and discipline, as is currently being done, can, in fact, support export competitiveness and strengthen Sri Lanka’s external position.

“A weaker rupee does not mean the economy is failing. For export sectors, such as apparel, a more competitive exchange rate will make exports more competitive, thereby helping protect jobs, strengthen foreign exchange earnings and support the wider economy. At a time when Sri Lanka needs to build reserves and increase foreign currency inflows, exporters have an important role to play,” Fernando said.

JAAF said the country’s focus should be on maintaining confidence, avoiding speculation and supporting industries that generate foreign exchange, it added.

The Association added that a competitive exchange rate, together with stable policy, efficient logistics and lower operating costs, can help Sri Lanka protect its recovery while strengthening its position in global markets.

Nearly six months after the devastating Ditwah cyclone struck the Kandy District, more than 1,600 affected families still remain without permanent housing and continue to live under difficult conditions, Parliament was told on Tuesday.

Raising a question in the House, Kandy District NDF MP Anuradha Jayaratne said that six months since the disaster would be marked on May 24, yet a large number of victims were still living with relatives, parents, friends or in rented accommodation due to the destruction of their homes.

“Some of the victims have received compensation, but 1,630 families have still not been provided solutions for the loss of their homes. This may amount to around 5,000 people. They continue to live in hardship,” the MP said.

He urged the government to inform Parliament of a specific time frame within which the displaced families would be resettled and their suffering brought to an end.

Responding on behalf of the government, Deputy Defence Minister retired Major General Aruna Jayasekera said the authorities were unable to provide an exact date for the completion of the resettlement process, but assured the House that efforts were continuing to assist the affected families.

The Deputy Minister said all 20 Divisional Secretariat divisions in the Kandy District had been affected by Cyclone Ditwah.

According to official figures presented in Parliament, 6,119 families were affected by the disaster, while 1,660 houses were completely destroyed and another 11,352 houses partially damaged. In addition, 4,179 business establishments and 203 religious places had also suffered damage.

Jayasekera said that compensation amounting to Rs. 625.9 million had so far been distributed among affected persons.

He further stated that 14 new housing projects had been proposed for families whose homes were destroyed, and construction work on five of those projects had already commenced in Kandy Four Gravets and Gangawata Korale, Kundasale, Pahatha Hewaheta, Harispattuwa and Thumpane.

The Deputy Minister said lands had so far been allocated to 302 affected families and added that government officials were working continuously to complete the resettlement programme as soon as possible.

By Saman Indrajith

Coast Guard personnel in coordination with the officers of the Kotawila Divisional Crime Detective Bureau arrested a person in possession of 07.540g of Crystal Methamphetamine (ICE) while transporting the drug for sale during a search operation carried out in Kuruduwatte Road, Hikkaduwa on 18th May 2026.

The suspect along with the Crystal Methamphetamine were handed over to the Kotawila DCDB for legal action.