Sri Lanka Port City dollarization upheld, constitution violated by depreciation, Supreme Court rules
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ECONOMYNEXT – Sri Lanka’s Supreme Court has upheld the freedom of workers in China-backed Colombo Port Coty to be given foreign currency denominated salaries and ruled that any violation of the rights of constitutional rights of other workers outside came from rupee depreciation.
Through foreign currency denominated economic activities including sales and salaries, the Colombo Port City is intended to be a dollarized or areas with currency competition.
Workers would therefore be protected from the currency collapses that come from policy errors or deliberate real effective exchange rate (REER) targeting of the Monetary Board of the central bank and resultant real salary and savings destruction that impoverishes them.