Sri Lanka new govt should respect independence of central bank: Wijewardena

ECONOMYNEXT – Sri Lanka’s new government headed by Ranil Wickremesinghe should respect the independence of the central bank, and any interference would jeopardise the country’s rescue efforts, top economist W A Wijewardene said.

Wickremesinghe’s statement that a billion rupees would be printed to pay salaries had triggered widespread concern, he said.

“It is like giving a sugar meal to a diabetic,” Wijewardena told a forum organized by Sri Lanka’s central bank.

However there had been immediate pushback from independent economists, he said.

The quick tax measures announced by the Prime Minister this week, while not giving very much revenue immediately would bring confidence, he said.

Wijewardene said interference in the central bank’s indpendence could jeopardise the current efforts to stabilize the economy.