No positive response to revive economy: President blasts at CB officials

Sandaruwan Silva | Author . පරිවර්තනය කරන්න සිංහල හෝ தமிழ் 6/17/2020 11:04:00 AM
No positive response to revive economy: President blasts at CB officials

Though many tools have been introduced by the Central Banks in the countries around the world revive economies, the Government has not received such a positive response from the Central Bank of Sri Lanka (CBSL) to do so, President Gotabaya Rajapaksa said yesterday said.

The President has made these instructions during a meeting with the top officials of the Central Bank which was held at the Presidential Secretariat today.

“We cannot let the health crisis develop into an economic crisis. What we are facing is a global crisis. The Central Bank and the Treasury are entrusted with the responsibility of formulating right monetary and fiscal policies that are instrumental in economic revival. Let me know the measures that need to be taken to confront the crisis without delay”, President Rajapaksa said.

He said Central Banks in leading countries such as the United States, Japan and Australia as well as in small countries have put in place required mechanisms to revive economies in their respective countries.

“Sadly, the Central Bank of ours has not put forward a single proposal to rebuild the economy. The Government owes a large sum of money to various institutes for the services and products they supplied during the past couple of years. The Central Bank had ignored the proposal made by the President to provide Rs. 150 billion to banks by accepting the outstanding due as collateral. The Government will have to take the blame for the economic slowdown due to this serious negligence of duty on the part of the Central Bank,” he said. 

However, meanwhile, Finance Minister if the former government Mangala Samaraweera said the economic crisis was a result of lack of fiscal discipline and economic mismanagement of the new government.

"Hysterical President blames the Central Bank and COVID-19 situation for an economy in shambles. This crisis is the result of the lack of fiscal discipline and economic mismanagement of the last seven months. The unplanned tax cuts of December 19 also triggered this economic crisis and not COVID-19 situation," Mr. Samaraweera tweeted.   

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