Central Bank unveils six-month road map for Sri Lanka’s economy

Ajith Nivard Cabraal

Governor of the Central Bank of Sri Lanka (CBSL), Ajith Nivard Cabraal unveiled the ‘Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability’ today (October 01).

The event is held at the Atrium of the CBSL and the proceedings commenced at 10.00 a.m.

However, due to the prevailing COVID-19 pandemic situation and in keeping with required social distancing, participation is strictly limited to invitees.

Speaking on the Central Bank’s ‘to-do-list’ regarding macroeconomic stability concerns, he said that they will ensure the maintenance of mid-single digit inflation and ensure stability of interest rates and the exchange rates.

He said the CBSL will continue with steps to curb prohibited pyramid schemes and other financial scams and also introduce directions on IT Risk Resilience of Licensed Banks.

Cabraal said that the central bank balance sheet will be strengthened with gradual rollback measures and the buildup of external reserves.

It will also strengthen off-site surveillance and improve risk management framework including Governance in financial institutions, he said.

The governor said that they will increase the frequency and modes of public awareness and also launch a green financing facility.

He said that regional development initiatives will be strengthened and new regulations on financial consumer protection will be developed under the Monetary Law Act.

He added that the central bank will introduce a user-friendly online complaint submission portal through the CBSL website and social media.

Meanwhile a ‘Credit Counseling Centres’ and ‘Investment Advisory Centres’ are to be established at Regional Offices while the central bank will facilitate the setting up ‘Equity Funds’ to support stressed businesses and thereby avoid the increase of nonperforming loans (NPLs).

The CBSL Governor further said that the cash margin deposit requirements on non-essential / non-urgent imports will be discontinued with immediate effect.

He said they will also consider the possibility of buying back the entire Issue of ISBs maturing in January 2022 and/or July 2022, if high discounts are prevalent in the market.

(Source: Ada Derana)