Saturday May 04, 2024
Saturday May 04, 2024
Friday, 20 May 2022 02:16 - - {{hitsCtrl.values.hits}}
The Central Bank Governor Dr. Nandalal Weerasinghe yesterday said immediate appointment of Finance Minister is critical to fast-track support program from the International Monetary Fund (IMF) and foreign debt restructuring exercise.
“The discussion with the IMF is ongoing. We shared our policies and intentions on policy reforms that will be implemented in the next six to 12 months. IMF team will assess and the next step is to analyse the debt sustainability,” he told journalists yesterday.
He expressed concerns that the delay to appoint Finance Minister will derail the overall measures to ensure growth-supportive macroeconomic stability.
Although the Cabinet of Ministers and Central Bank can give authority on certain policies, Dr. Weerasinghe said a Finance Minister is needed to sign-off on key policy measures such as the IMP program.
“I would like to see a Finance Minister appointed soon,” he added. The resignation of former Prime Minister Mahinda Rajapaksa on 9 May, led to a political crisis with an automatic dissolution of Ministers. As of yesterday, there is no Finance Minister appointed for key portfolio.
As per the Governor, the political situation has improved with the appointment of a Prime Minister and commencement of the Parliament session, adding that it gives him comfort to continue in his job. Last week he threatened to quit from the position, if political stability was not established soon.
“With Prime Minister, few Cabinet Ministers in place and Parliament in session — Sri Lanka is in a better place and seems to be going in the right direction,” Dr. Weerasinghe said.
It is tipped that Prime Minister Ranil Wickremesinghe may take up the post, as former Finance Minister Ali Sabry reportedly declined.
The Central Bank Governor pointed out that the debt restructuring could take about six months, although the situation makes it difficult to predict timelines accurately. Dr. Weerasinghe also said that recommendations for legal and financial advisers for the restructuring will be placed before the Cabinet of Ministers soon.
He expects IMF team will put out a statement by the end of its assessment, as the mission nears an end.
The Central Bank and the Government commenced technical level discussions with the IMF aimed at working towards a program to address the macroeconomic challenges faced by the economy, while expeditious arrangements are being made to commence the external debt restructuring process.
The country has previously said it needs between $ 3 billion and $ 4 billion this year to pull itself out of crisis.
