CBSL Must Be Independent For Economic Recovery

Shakila Ifham

May 11, 2022


The US Ambassador to Sri Lanka Julie J. Chung in her tweet said:
“A professional and independent at the Central Bank of Sri Lanka (CBSL) is essential to Sri Lanka’s economic recovery.

Ambassador Chung spoke with Governorof the Central BankDr. Nandalal Weerasinghe today to explore current efforts to address the crisis and ways the US can support local and multilateral efforts to get Sri Lanka’s economy back on track.

Meanwhile, Governor Dr. Weerasinghe told journalists today (Wednesday) he would resign if there was no political stability in coming weeks.

He said that he has informed the authorities about his immediate plans.

He also said the crisis in the country has worsened and power interruptions may have to be increased due to the forex situation.

Dr. Weerasinghe also said thatit was extremely challenging to revive an economy in a country where law and order is not maintained and reiterated that political stability is paramount.

He indicated that without a legitimate government with a Prime Minister, Cabinet and a Finance Minister, Sri Lanka won’t be able to proceed with debt restructuring and negotiations with the International Monetary Fund (IMF).

CBSL Chief also expressed concern about the usable foreign reserves which he termed as barely enough to finance one week of imports.