State Minister for Finance, Ranjith Siyambalapitiya, responded to reports revealing that the per capita debt has surpassed Rs 1.2 million. He attributed the increase in the debt burden to the significant depreciation of the rupee, emphasizing the need to consider the broader context of the situation.
In response to queries from journalists, the minister underscored the importance of moving beyond mere numerical calculations to gain a comprehensive understanding of the scenario.
While acknowledging the relevance of the numerical approach that divides total public debt by the population, the minister urged for a more nuanced explanation.
Siyambalapitiya drew attention to the substantial depreciation of the rupee, noting a decline of approximately 45% between 2020 and 2023. He elaborated on how this depreciation had a profound impact on the value of the debt, stating, “The increase in debt burden resulting from the rupee’s decline has had a significant bearing on the current scenario, accounting for roughly 90% of the issue at hand.”
