DR NANDALAL WEERASINGHE NEW GOVERNOR OF CBSL ASSURED THAT THE BANK WILL NOT SUCCUMB TO POLITICAL INTERFERENCE
The new Central Bank (CB) Governor Dr. Nandalal Weerasinghe assured that the bank will be independent and would not succumb to political interference.
“I am here to serve the people and not any politician. Allowing the bank to function independently is one of the ways to get over the economic stalemate,” he told the media on his first monetary policy briefing after assuming duties as the 17th Governor of the Central Bank. Greater autonomy of the watchdog is crucial to carry out its role devoid of external interference.
However, the regulator said the country’s growth prospects for this year are affected by the recent adverse developments on the global front in terms of supply chain disruptions and rising commodity prices and on the domestic front, particularly interruptions to power and energy supply and other shortages.
The bank noted that the economy recovered from a contraction of 3.6 percent in 2020 and recorded a growth of 3.7 percent in 2021.
Considering the severity of the external shocks, rising inflationary pressures and continued imbalances in the economy, the Monetary Board stated that a comprehensive set of policy measures with other initiatives that have an impact on the overall economy, is essential to safeguard stability on all fronts and to counter economic headwinds.
Although the momentum in the export sector continued with earnings exceeding one billion US dollars for several consecutive months, elevated levels of expenditure on imports have led to the continued widening of the trade deficit. Tourist arrivals indicate a promising recovery, although recent geopolitical tensions, and domestic economic uncertainty along with power and energy outages and supply interruptions, could weigh on this recovery to some extent.Workers’ remittances are showing signs of recovery following the adjustment to the exchange rate and the continued increase in worker migrations.