In a video going viral on social media platforms, Prime Minister Harini Amarasuriya appears hesitant as she responds to concerns over money printing, clarifying that while new currency is being printed, it’s strictly to replace old notes, not to increase the monetary supply.
This statement conflicts with earlier assurances provided by Cabinet Minister Vijitha Herath, who had firmly asserted that the new National People’s Power government has avoided both obtaining of loans and also printing of money since taking office.
The matter has sparked confusion after reports surfaced that the central bank injected about 100 billion rupees into the banking system by leveraging domestic assets, causing liquidity to swell from 138 billion rupees in September to 193.4 billion rupees by October 25. Following reports, which stated that 36.16 billion rupees were added via an overnight auction and another 70 billion rupees through a 7-day term auction, Herath responded, dismissing the claims as a routine liquidity measure tied to the maturation of treasury bills and bonds rather than new currency creation.
“There has been no new money printing. If new currency had been printed, we would see notes with the signature of President Anura Kumara Dissanayake, acting as the Finance Minister,” Herath stated, inviting the public to verify the claim themselves.
