will help bring Sri Lanka’s depleted foreign exchange reserve to pre-crisis levels in four years, said the country’s central bank chief.
“During the programme period of four years, we are committed to bringing foreign exchange reserves back to levels we had before the crisis, which is about US$8-9 billion – this is not comfortable, but it will be sufficient,” Central Bank of Sri Lanka governor Nandalal Weerasinghe told The Straits Times on Thursday.
Blaming previous governments for borrowing excessively from the global markets at commercial interest rates to finance fiscal deficit, Mr Weerasinghe said Sri Lanka would have access to borrow from the international market only after the four-year programme. Mr Cabraal had opposed an IMF bailout in favour of a domestic solution to the economic crisis. But as dollar reserves dipped, the island could not afford to import food, medicine, fertiliser and fuel, triggering grave shortages.
“It removes the secretary of the treasury from the central bank’s monetary board, so that the Ministry of Finance would have no role in the governance of the central bank,” he said.
Source: Loan Digest (loandigest.net)
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