Governor CB says economy healthy

Ajith Nivard Cabraal

The Central Bank said the country’s foreign reserves have increased during the past two months following the victory in the war and the dawn of peace.

The Bank sources said foreign exchange reserves have increased which enables to support the balance of payment for the rest of the year.

“The achievement of peace has increased investor confidence and capital flow to the country is growing”, sources said.

Governor, Central Bank, Ajith Nivard Cabraal said there is no urgency for the bailout package as the country’s foreign reserve base had increased. The country will be yet pursuing the loan that will be used as a buffer in times of need” he said. According to the Central Bank, foreign reserves have increased by 26 percent in the past couple of months. The Bank is optimistic that this healthy trend will continue following the peaceful situation in the country. A US$ 1.9 billion bailout package was sought this year from the IMF to support the balance of payment which had run into a crisis.

“All technical matters relating to the loan were completed and it is now a matter of time” the Governor said. The United States and UK have been sceptical about the granting of the loan to Sri Lanka though the US this week clarified its position that on no occasion it had threatened to block the IMF loan to Sri Lanka.

LF