Sri Lankan Finance Minister Mangala Samaraweera on Tuesday called for a summit of G-24 nations, including India and China, in Colombo to deal with the worsening global economic crisis.
Samaraweera invited countries affected by the depreciating currencies to form a coalition to face the crisis.
"The rise of the US dollar is having a serious impact on our currencies. We are not the only one affected," Samaraweera said as the Lankan rupee hit an all time low of 174.12 to the US dollar in Tuesday's trading.
The local currency has depreciated more than 12 per cent against the US dollar so far this year.
Samaraweera said he wanted G-24 nations to meet in Colombo to agree on a common strategy and discuss ways to deal with the US sanctions on Iran and the rising dollar and oil prices.
"I want to build a coalition of the willing to deal with this problem," Samaraweera said. "I don't see the global situation improving any time soon."
Sri Lanka would face harder times next year, Treasury officials believed.
The government last month slapped a curb on luxury imports to slow the pressure on the rupee due to import demand.
"We think the situation will get worse with US sanctions against Iran taking effect (early next month)," Samaraweera said.
Sri Lanka relies heavily on Iran for its crude oil imports and Tehran is one of the main markets for Colombo's main export commodity tea.
As further measures to cushion the affect of the falling rupee, commercial banks have been asked to restrict credit to finance the purchase of vehicles, air conditioners, perfumes, mobile phones and TV sets, among other luxury consumer goods.
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