As the Central Bank of Sri Lanka’s liquid resources are almost nonexistent after being used to finance the imports of some petroleum products and gas supplies for the upcoming few weeks, the remaining imports must be financed under the new administration, noted CBSL’s Governor Nandalal Weerasinghe.
He told CNN on 19 July when he was questioned by the Anchor about the current financial crisis and how the future would be with an all-time high interest rates.
It would be under the new administration they should have the ability to secure short-term financing until the CBSL receives the IMF bailout, which is anticipated to occur in December, he told the CNN.
He also pointed out that the earlier administration of the CBSL and the Government had a different model where they said Sri Lanka does not need the International Monetary Fund (IMF) as bailout and had not taken the position of restructuring the external debt. However, now they have taken a different position, he said.
“Now we are turning around to seek the IMF bailout package and restructure the external debts and it’s continuing to negotiate with the IMF,” he added.
By Sulochana Ramiah Mohan