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Message: <blockquote data-quote="SadSandun" data-source="post: 24326661" data-attributes="member: 427049">Meka misleading. Foreign loans should be compared with foreign currency not LKR and converting back to foreign currency.1. For foreign $ loans should be paid in say $, and that should be funded from a foreign currency account. If depreciated equal amount of LKR will be higher. If the Loan is considered in LKR them its higher. That is called foreign exchange loss for commercial organizations and when it is realized (load paid) it is accounted but not in the intermediary years.2. If $ appreciates, exports will be come cheap for customers and import will be come expensive for local customers. That will help balance of payment and propel exports and reduce imports.</blockquote>

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