“SL needs at least six months for debt restructuring” | Daily News

“SL needs at least six months for debt restructuring”

 

Sri Lanka will need at least six months for debt restructuring and around three months for a successful outcome from the ongoing IMF talks, said Governor Central Bank Dr. Nandalal Weerasinghe at a Press conference on Wednesday.

Dr. Weerasinghe, stressing the need for quick political stability, pointed out that without a legitimate government with a prime minister, cabinet and finance minister, Sri Lanka would not be able to proceed with debt restructuring and negotiations with the International Monetary Fund to seek economic assistance successfully.”

“Hence we need a new government soon as without political stability, it doesn’t matter who runs the central bank there will be no way to stop the economic deterioration.

“The country was fast going down a slope when I took over just over a month ago. I thought we were able to apply the brakes, but with events of Monday the brakes no longer work as political unrest derailed the bank’s recovery plans.”

“We had suggested a restricting of local taxes to raise more local capital but we are unable to implement them as these have to be decided and approved by the cabinet of ministers and parliament.”

Dr. Weerasinghe said that despite the lack of political stability he had taken some steps to ease the economic burden which includes a ‘daily trading band’ for the rupee dollar exchange rate.

“This is to prevent high off market prices being charged from importers by exporters and the band will be based on the previous day’s price and a plus or minus margin.

The trading band will help establish a more transparent price for exporters and importers.

 


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