China’s currency adjustment last week will trickle down to Sri Lankan consumers as another unwelcome price increase, say local businesses. China’s currency adjustment last week will trickle down to Sri Lankan consumers as another unwelcome price increase, say local businesses. “After the re-valuation of the yuan, the prices of Chinese exports increased by 12 percent,” said Ranjith Hettiyarachchi, managing director of Samson Sportswear at a National Chamber of Commerce seminar on Wednesday.
“Chinese exporters have increased their prices because their earnings from exports have reduced after the re-valuation. So Sri Lankan consumers will see a price increase,” said Hettiyarachchi.
China has, for years, been accused of undervaluing its currency to gain an edge in the export market and was asked by other countries to either let the yuan float or increase the exchange rate.
Last week the Chinese government de-linked the Chinese currency – the yuan – from the US dollar and linked it to a basket of foreign currencies – a move that saw the currency appreciate slightly against the dollar.
The Chinese currency is now valued at 8.1