Exchange rate nightmares

HI Steve,
Problems. Problems, Problems,..
.What to do .?

I've got the same problem as you. I've been watching the pound sink against the rupee .
I'm not flying out until beginning of February but I'm not sure if that gives me an advantage or not.
The crazy exchange rate is because, after years of a floating rupee, about the beginning of this year, our dear friend, Mr Rajapaksa, decided to peg the rupee to the dollar as it once used to be.
Now, as the dollar is rising against the pound, it's dragging the rupee up with it.
Our nice Mr Rajapaksa thinks this is all great because he thinks it will give him more credibility as he borrows more and more cash from the Chinese, Japanese, Iranians, etc.and also enables him to get lots of guns and stuff on credit.

Trouble is, as the pound goes down against the dollar and the over inflated rupee, companies like M&S, will stop buying from the Sri Lankan textile / clothing factories and other Sri Lankan exports , which will result in most of the Sri Lankans being out of work,

The I.M.F. have told Rajapaksa that he needs to allow the rupee to float before the currency collapses completely but him and his family, who are now all cabinet ministers on huge salaries, think that everything is going fine.
So far, he's not budging...
Come the new year, I might need to take over your sandal repair spot if you get a decent client list going.A good spot would be on the corner by the market, next to Negombo Clock Tower.
The clip board venture is a little over subscribed at the moment. Just no vacancies anywhere.
The battery fans could be a good line . Val's got one that is attached to a plastic bottle which sprays a very fine water mist as you wave the fan in front of your face. Trouble is, if all the factories close then no one will be able to afford them.

As I said,....What to do.?.
Like you, I can't wait to get back out there.
Rod.

It has to change a lot in the desired direction to pay for the extra exchange commission. Its hard to give advice given the world volatility at the moment. Yen was a very good bet as opposed to the dollar. However, Japan has just followed the Euro zone into recession. China's government figures are masking a slow down there as well. Hard to find a refuge these days.

My Baidu just did a 45 USD dump today*&%#. I am mostly cash short of a quick bargain buy of Baidu. Pray..

https://www.keellssuper.com/contentsv2/Products/detail.asp?ItmID=5054

50p for a small beer - shouldn't be a problem

could be worse - try thinking in $banana - formerly Aussie dollars..

can you imagine how relieved the locals are, that their currency is not currently floating (lankans are not renowned for water skills - although their old 5p aluminium coin if placed correctly will actually float)

The reductions in train, bus fares etc.. wouldn't be possible without a fixed rupee

Mr Egghopper is right really - it is still a very cheap place by western standards and I am sure the current situation has some benefits to local people as well as disadvantages. I keep seeing that prices of some things have been brought down but others have risen. I notice the difference when I send bits of money occasionally. Western Union are currently offering about 155 I think so anything I send is less than I think it is going to be. Anyway, I can probably afford a Lion beer and rice and curry for New Year's Eve!

Maybe buses rather than car travel though. And Rod, I have a spot next to Galle cricket ground in mind for the sandal repairs if Negombo does not work outIncidentally I once nearly got killed there when a coconut fell out of a tree and me by inches.Clearly it was not my time to go.

Hello Steve,
There's just been a budget in Sri Lanka and you will be glad to hear that along with the fall in fuel prices, transport costs have been ordered to be dropped by 20% . In theory that means that the biggest cost, ie; getting around will fall dramatically. I tried this with a three wheel driver.... 'How much?,,,, 'well, this is the first,,,,,' 'How much then?,,,,...I ended up giving him 10rs less.
Also in theory all other costs will drop as the reason for price increases in Sri Lanka was directly linked to the rise in fuel prices.
On the other hand. there is a 50-100% tax now imposes on all imports or imported goods. It makes you think.
All the best Em

Hello Steve,
We recently went through Doha. The trick is, to 'borrow' a nice red blanket, (with the airline logo on) , most of the Africans seem to be doing it. You may be able to claim a free meal. We stayed for ages and so got two. But, it means queuing and being questioned at length by a security person, then you get a slip of paper which can be exchanged for a rice curry and an orange on the top and a coke.
No really, its a great airport and the video choice on the plane is better than any (hundreds). I watched several ealing comedies, the white stripes and tv. Sri Lanka is waiting and looking forward to seeing you again.
Don't worry about the money, the best things are free.
best wishes
Chris

Hi Emily,
I know an order has been made to drop transport prices but I read that the operators are refusing to impiment that as they claim that the import tax rise, for spares, etc more than covers the fuel price drop.
I read through the budget proposals and over all, the government is taking quite a bit more out of the pockets of the people than they are putting back in.
Rod.

I agree with Beebopbeedoobi ... the best bits in Sri Lanka are free ... a swim in a warm river with kingfishers darting past, smiles and sharing a laugh with the wonderful welcoming people, sunshine, heat, the smell of incense at the temples and flags fluttering underneath a blue sky, a game of cricket on the beach with the local boys ... oh and a king coconut drink from the roadside is still affordable even if the beer is going up a bit. Ahhhh! I CANNOT WAIT another 7 weeks to be back there, and at least my flight is paid for .....

Sue

Hello again,
You are right there Rod. Luckily all i have in my pockets are my hands.
I also agree with Sue, time to enjoy life.
Em