The opposition says the government should have sought the support of the International Monetary Fund months ago, and not amidst an economic crisis.
Parliamentarian Tissa Attanayake speaking in Parliament today said the depreciation of the rupee against the US dollar could have been avoided and controlled to a large extent if the government sought IMF assistance in a timely manner.
He said the present administrations incorrect economic decisions caused the prevailing crisis.
The Parliamentarian cited two main reasons for the decrease in foreign remittances, one being the government forcibly holding on to the value of the rupee that resulted in a severe disparity of the value when the rupee was floated.
He said the second reason was losing faith in financial stability.
The MP said while state banks are buying US dollars at Rs.260, foreign banks are buying dollars at Rs.280 while the black market value has increased over Rs.300.