The Rs 10,000.00 withdrawal early this month is now having the buying power of approximately RS 7000.00 today and such is the shock of the more flexible Rupee and initial indications seem to have increased the inward remittance of dollars by our strongest forex contributes for the past 3 decades has been the middle eastern based migrant labor force . The 7 billion dollar income was far greater than our exports and tourism income and the reason for the conservative governments of recent past have confidently gone for borrowings through ISBs . The shocking reduction in this main source of revanue of dollars from mid 2020 and the added burden of the revanue in tourism as a result of 2019 Easter Sunday events and the other limitations of the pandemic and it’s responses for 24 months was a little too much for SL . Finally it seems the shock we had last Monday hopefully is a better way of finally accepting the reality and start of a slow and steady recovery of the economy which may slowly respond positively to the adjustments. The headline yesterday of a 400% increase in inward remittances since the devaluation is encouraging signs. The stock market is always ahead of the economy hence the unusual pullback that started in January was extended until last Thursday where we saw a record breaking recovery of the all time best daily increase of close to 700 points is probably an indication that the calm will return and the uptrend will start again .
