Be patient until we can go back to our usual lifestyles says Cabraal
2 years ago
Acknowledging the fact the Sri Lanka’s economic standing is not at its optimum at this critical juncture, State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal urged the people of the country to remain patient until they are able to enjoy the same perks of living which they have been used to. The State Minister made these statements during an interview with Aljazeera yesterday (27). In response to concerns of the public in relation to the inability to send funds abroad for the purpose of educating children, or in the case of businesses being unable to open Letters of Credit as banks lack adequate dollar reserves, Cabraal asked the public not to get too “hasty”. “There will be a few delays in some transactions. Please do not get too hasty and panic,” he stated while ensuring that this situation will be resolved soon. Addressing the recent downgrading of Sri Lanka by several rating agencies, Cabraal explained that serious investors do not only look at such ratings, as they are concerned about the fundamentals of how the country is being handled. “Overall if you look at the way the economy has been handled, it is only a matter of time until the rating agency statements are refuted by business confidence itself,” he stated. In terms of Sri Lanka’s liabilities, the State Minister assured that the nation’s cash flows have been carefully lined up to ensure that Sri Lanka will always be in a position to meet its liabilities. He also pointed out that the Government has never defaulted on a single payment. On the subject of positive economic indicators which showcase stability, Cabraal stated that there are several. “Our rupee has been stable for the past three months, the same is true for interest rates. Growth is back, people are getting about their business. The stock exchange is having an increase almost everyday. Turnovers are very good. What more do you need to have as indicators?” he asked. Despite these factors, in terms of some of the concerns that people have with regard to Sri Lanka’s economy, Cabraal stated that it is the Government’s duty to ensure that every single one of them are refuted by action, adding that this is exactly what the Government is currently trying to do. When queried if the decision to restrict imports will have an impact on Sri Lanka’s manufacturing sector which in turn relies on export markets, Cabraal stated that import restrictions have been implemented after careful analysis. “Only the imports which are not connected to Sri Lanka’s exports have been restricted. A responsible decision has been taken to curtail imports so that foreign outflows are managed,” he said. Cabraal also noted that the Government has carefully laid out a path inclusive of short term and long term plans which are currently being executed, and therefore, turning to the International Monetary Fund is not a necessity given the current situation.