CBSL Governor to stay on

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Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe who threatened to resign only a few days ago due to political instability, however, told reporters yesterday  he is contended with the current status of the country’s political environment and therefore, would continue to stay on.

Weerasinghe was responding to a question raised by Ceylon Today at a media briefing held at CBSL Headquarters.

“Except for the fact that there is no Finance Minister appointed, there is now a Premier, a few appointed Cabinet ministers and a functional Parliament. But at the time I was contemplating to resign, violence had gripped the country; there was no Premier, no Cabinet nor a functional Parliament at the time,” he quipped.

But there is now an improvement and institutions are working well, the Governor said.

In respect of the economy, he warned that year on year (YoY) inflation would reach record high levels of 40 per cent, from the current ‘low’ 20 per cent levels, led by cost-push factors driven by a depreciated rupee and due to certain fiscal actions to be taken such as the liberalisation of administered prices in the near future, before subsequent stabilisation. 

The Governor further said that interest rates have reached a plateau and that CBSL would contain any further rate pressure by printing money, which he however said was ‘non-demand pull inflationary causing’.

By Paneetha Ameresekere