CBSL Chief hopeful that IMF will get assurances

CBSL Chief hopeful that IMF will get assurances; Responds to staff wearing black

by Zulfick Farzan 25-1-2023 | 3:34 PM

COLOMBO (News 1st) - Sri Lanka's Central Bank Governor Dr. Nandalal Weerasinghe is hopeful that assurances from creditors can be obtained within the 1st quarter of the year.

Speaking at the Monetary Policy Review No. 01 of 2023, the governor said that he is hopeful that the International Monetary Fund would be able to receive necessary financing assurances from all the creditors in a very short period.

"India has clearly given the financial assurances which are acceptable to the International Monetary Fund. First, we need to thank the Indian authorities for issuing that letter. Secondly, the other bilateral creditors in the Paris Club, and China and some other small bilateral creditors are in the process of issuing financial assurances. There have been significant communications that have been happening between the IMF, and between the Paris Club and non-Paris Club members, and the Ministry of Finance. That process is making very good progress," he elaborated to the media.

"Issuing financial assurances is a matter between the creditors, and the IMF. What is expected is that the creditors will issue the letter to the IMF in line with their targets. Then the IMF will have to look at it and make a decision if these assurances are sufficient for them to go ahead with the IMF Board Approval.  They are in this process.  There has been a very constructive engagement and discussion going on, even right now. We hope IMF would be able to receive necessary financing assurances from all the creditors in a very short period," he added.

A journalist also questioned the Central Bank governor on Wednesday's (25) attire of a majority of the Central Bank staff who were seen wearing black in support of the Black Protest Week which was organized against the government's tax policy. Incidentally, the governor was also wearing a black jacket.

"Anyone can wear any colour at the Central Bank," quipped the Governor, adding that the tax policy is not something decided by the Central Bank and protest on a tax policy should be done at institutions that deal with such matters, like the Parliament, and Finance Ministry.

Full CBSL Policy Review below: