Nandalal Weerasinghe: Latest News

Sri Lanka may miss IMF December deadline, but will make request in January 2023 – CBSL Chief

COLOMBO (News 1st) – According to the Governor of the Central Bank Dr. Nandalal Weerasinghe, market interest rates have been tightening since last August and the Central Bank has been continuing to tighten their monetary policy since April and July of this year; Central banks engage in tight monetary policy when an economy is accelerating too quickly or inflation is rising too fast.

He predicts that although inflation had climbed to 70% in the last month, this month, it is expected to decline. Sri Lanka seen slight depreciation of inflation since the last weeks of September and this has been controlled and stabilized by the restrictive monetary policy.

There was also some uncertainty about debt restructuring and our lack of stabilization (necessary to receive the IMF loan), but now, the Central Bank predicts that there are high expectations to increase market liquidity and a reduction of inflation. Additionally, money printing has drastically reduced from 31.6 Billion Rupees in 2020, it increased to 241 Billion in 2021, however, as of this year, money printing has declined to a mere 47 billion Rupees.Regarding Sri Lanka's pressing issue of where we are in negotiations with the IMF, the Governor assured that the Central Bank is consistently and coherently engaged in negotiations with the IMF.

Despite December being the anticipated target, Sri Lanka will be unable to make it by next month and may miss this deadline. However, this definitely means that Sri Lanka will be ready to take its request to the IMF board by January 2023, he said "we don't need to wait until March to go to the IMF board.

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Ajith Nivard Cabraal - Nandalal Weerasinghe - Sri Lanka should have gone to IMF sooner, delay was a mistake – CBSL Governor - - China - Sri Lanka - Britain
Sri Lanka should have gone to IMF sooner, delay was a mistake – CBSL Governor
BBC: Sri Lanka could have avoided its current economic turmoil if it had gone to the International Monetary Fund (IMF) for a bailout sooner, said Central Bank Governor Dr. Nandalal Weerasinghe to the BBC, adding that the delay in seeking outside help was a mistake.The country has said it needs $5bn this year in support from the international community, including the IMF.Sri Lanka defaulted on its foreign debt for the time in its history last month.“If we had taken the decision to go to the IMF earlier, if we started the debt resettlement process one year before, we could have managed the situation without this kind of suffering in this country,” he said.His comments came as he is attempting to restore order to Sri Lanka’s economy, which is experiencing extreme fuel shortages, soaring food prices and a lack of medicines.Weerasinghe said Sri Lanka was experiencing its worst economic crisis since independence from Britain in 1948.A team from the IMF is due to arrive in Colombo for talks on Monday (20) and Weerasinghe will be a key participant in those meetings.Yet there is uncertainty about whether Weerasinghe, who replaced previous governor Ajith Nivard Cabraal in April, will be reappointed for a full six year term at the end of this month.“I have expressed my desire to continue,” he said.“I don’t think when I took over I had the expectation I would be serving only for two months and go back.
Charitha Herath - Nivard Cabraal - Nandalal Weerasinghe - COPE wants reasons for economic crisis investigated - - Sri Lanka
COPE wants reasons for economic crisis investigated
COLOMBO (News 1st); Sri Lanka’s Parliamentary Watchdog, the Committee on Public Enterprises has recommended that a Special Parliament Select Committee be appointed to investigate the reasons for the present economic crisis, as well as all the officers who had neglected their duties to pave the way for the crisis.COPE Chairman Professor Charitha Herath (MP) had said the decisions taken by a few had negatively impacted the entire country, and the investigation needs to be expedited considering the matter as a criminal act.Appearing at the Committee on Public Enterprises, the Governor of the Central Bank, Dr. Nandalal Weerasinghe, said that when Sri Lanka approached the International Monetary Fund (IMF) and sought credit facilities by March-April 2020, they had stated in writing that Sri Lanka did not have Debt Sustainability at that time.Therefore, the then Secretary to the Ministry of Finance and the Governor of the Central Bank had been informed in writing that the existing loans would have to be restructured in order to obtain credit facilities, he said.Accordingly, after the relevant technical discussions were carried out under the Finance Act, the Monetary Board of the Central Bank recommended the relevant technical matters to the Minister of Finance and other senior officials, the Governor of the Central Bank said adding that the relevant decisions are made by the Cabinet including the Minister of Finance.The then Minister of Finance had never addressed Parliament and Ajith Nivard Cabraal, who was speaking in Parliament on his behalf, had not informed Parliament of this fact, MP Dr.