Development and Prosperity’ tag  to hide rupee devaluation –– Harsha

Rs 2,415 in 2004 equals Rs.5000 today

The real objective of today’s issue of a new series of currency notes was not to depict the purported "development and prosperity" but to obfuscate the addition of the Rs. 5,000 note, UNP MP and economist Dr. Harsha de Silva said yesterday.

The President and Central Bank were using the purported ‘development and prosperity’ tag to confuse the people in the hope that they would not link the issue of Rs. 5000 note directly to inflation, he said

Dr. de Silva said: "In fact the whole song and dance about issuing an entire new series is to obfuscate the addition of the Rs. 5,000 note. The truth is that when the UPFA came to power in April 2004 the Colombo Consumer Price Index or in other words the basket that measures inflation was at 111.6 points. By January 2011, the CCPI had climbed to 231.2. This means that the price level during this period had increased by 107 percent or more than doubled. In other words the purchasing power of the Rupee has halved. Therefore the need for the Rs. 5,000 note is clear to any person who is able to see through the government propaganda. If one spent Rs. 2,415 to purchase some amount of food and other items when this government came into office, today that person needs Rs. 5,000 to purchase the same amount."  

Sri Lankans could not be fooled all the time even though the President and Central Bank seemed to think otherwise, he said.

While appreciating the efforts of the government and security forces in defeating the LTTE, Dr. de Silva said that the rulers had lost the economic war. (ZJ)


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