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Harsha forecasts prolonged economic crisis in SL due to governance failure

09 Mar 2022

The Samagi Jana Balawegaya (SJB) Economic Policy Team, comprising of MPs Harsha De Silva, Eran Wickramaratne and Kabir Hashim had met with Central Bank Governor Ajith Nivard Cabraal this morning to discuss the current economic crisis, due to the mismanagement by the Government says MP Harsha De Silva. In a twitter post this morning (09), De Silva revealed that the Central Bank of Sri Lanka (CBSL) had proposed 8 points to recover from the economic crisis to Finance Minister Basil Rajapaksa, to which no response has been given to date. "The SJB econ policy team, Kabir Hashim, Eran Wickramaratne and I had candid meeting with Ajith Nivard Cabraal and CBSL senior officials this morning. Discussed 1. Ability to pay for imports n foreign debt and exchange rates 2. Soaring inflation 3. Fin system stability with moratorium ending. Doesn’t seem to us they are considering an IMF supported debt restructuring. (CBSL) was taking about paying USD 1b July bond etc. Said they proposed 8 points to Basil Rajapaksa and waiting. Looks like Sri Lanka crisis will prolong. Huge governance failure. Kicking can down road.," the tweet mentioned. Additionally, De Silva stated in this tweet that the Economic Team had made several proposals to ease the economic burden, one of which was to approach the International Monetary Fund. "We proposed urgent Debt Sustainability Analysis and plan out restructure Sri Lanka debt. We proposed to engage the IMF. We told them to seriously consider the shock of the pandemic-moratoriums ending; how banks and business will deal with it. Should consider some assistance," he mentioned.


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