Sri Lanka faces shutdown without stable Government – Central Bank Governor warns

- onlanka.com

Nandalal Weerasinghe - Governor of the Central Bank of Sri Lanka

Nandalal Weerasinghe – Governor of the Central Bank of Sri Lanka. (AP Photo / Eranga Jayawardena)

The Governor of Sri Lanka’s Central Bank, Nandalal Weerasinghe, has warned that the country may shut down if no stable government is formed soon.

There is a “lot of uncertainty” over whether enough foreign exchange can be found to pay for essential petroleum, he told the BBC’s Newsnight programme.

Progress on getting an international bailout package depended on having a stable administration, he said.

The country is in the grip of mass unrest over an economic crisis.

President Gotabaya Rajapaksa has fled abroad and acting president Ranil Wickremesinghe has imposed a curfew for a second day.

Sri Lanka has seen its economy collapse and the cost of food, fuel and other basic supplies skyrocket for ordinary people.

Many blame the Rajapaksa administration for mishandling the crisis and see Mr Wickremesinghe, who became prime minister in May, as part of the problem.

Nandalal Weerasinghe, who himself only took over as governor of the central bank in April, said he did not “see a way forward” on how to provide essentials without a stable administration.

“We have been able to finance at least three shipments of diesel probably until the end of this month and some one or two shipments of petrol, but beyond that, there’s a lot of uncertainty whether we even will be able to provide sufficient foreign exchange to finance essential petroleum for this country,” he said.

“If that doesn’t happen, then it will be like [the] whole country will be closed down. So that’s why I need a prime minister, president, cabinet, who can make decisions… Without that, all people will be suffering.”

Mr Weerasinghe has been holding talks with the International Monetary Fund on a bailout.

“We hope to be able to make good progress in our discussion with the creditors for debt structuring, but the timing for that process [depends] on how soon there will be a stable administration,” he said.

Once a stable government was in place, Sri Lanka could come out of the crisis somewhere “within three or four or five months”, he suggested.

The governor of the central bank has been seen as a potential new president himself, but he appeared to rule that out, saying, “I have no interest in… taking any political position.”

(BBC)

The post Sri Lanka faces shutdown without stable Government – Central Bank Governor warns appeared first on ONLANKA News - Sri Lanka News - Sri Lanka News Live and Breaking News Today.

You may also like

- adaderana.lk

Under Secretary of State for Political Affairs, Victoria Nuland arrived in Sri Lanka this morning (Feb. 01) on an official visit to mark the 75th anniversary of US-Sri Lanka relations.

- onlanka.com

Pakistan is gripped by a major economic crisis, with the rupee plummeting, inflation soaring and energy in short supply as IMF officials visit to discuss a vital cash injection.The post ‘We’ll end up like Sri Lanka’: Pakistan stares at economic collapse as IMF visits appeared first on Sri Lanka News - Latest Breaking News in Sri Lanka - ONLANKA News.

- colombogazette.com

Nepal’s Minister for Foreign Affairs Dr Bimala Rai Paudyal will visit Sri Lanka to participate in the 75th Independence Day functions. Foreign Minister Paudyal is making the visit at the invitation of her Sri Lankan counterpart MUM Ali Sabry, according to the Ministry of Foreign Affairs (MoFA). In Colombo, Minister Paudyal is scheduled to meet […]

- colombogazette.com

Bangladesh and Sri Lanka have decided to prioritize concluding talks on a Preferential Trade Agreement (PTA). Sri Lanka’s High Commissioner in Bangladesh Prof.  Sudharshan Seneviratne accompanied by First Secretary/Commerce Srimali Jayarathne held a meeting with the newly appointed President of the Dhaka Chamber of Commerce and Industry (DCCI) Sameer Sattar at the DCCI office in Dhaka. DCCI ...

- colombogazette.com

Surrey have re-signed West Indies all-rounder Sunil Narine for the 2023 T20 Blast campaign. The 34-year-old will be available for all games that do not clash with his commitments with the Abu Dhabi Knight Riders in International League T20. The white-ball specialist took 14 wickets in 14 games for Surrey last season and hit 199 […]

- adaderana.lk

The World Health Organization said Monday that COVID-19 remains a public health emergency but the pandemic is at a Âtransition point.Â

Entertainment:View All

Technology:View All

Local News

Local News

Sri Lanka News

@2022 - All Right Reserved. Designed and Developed by Rev-Creations, Inc