Sri Lanka’s economic stability depends on keeping politics out of the Central Bank, Governor Dr. Nandalal Weerasinghe warns, stressing that only independence can protect the nation from another devastating financial collapse.
Central Bank Governor Dr. Nandalal Weerasinghe has underscored the critical importance of safeguarding the independence of the Central Bank of Sri Lanka, saying it is the foundation for future economic stability and long-term growth.
He explained that political interference and the erosion of the Central Bank’s autonomy were among the key factors that triggered the financial crisis of 2022. During that period, inflation skyrocketed to nearly 70 percent, fueled largely by the unchecked “money printing” used to finance massive fiscal deficits.
Dr. Weerasinghe noted that such practices undermined confidence in the economy, exacerbating the crisis and leaving the country vulnerable to collapse.
“The independence of the Central Bank is not a luxury, it is a necessity for ensuring price stability and sustainable economic growth,” he said, highlighting that the Central Bank Act of 2023 has been designed to enshrine that independence.
He also stressed the importance of protecting the Central Bank’s operational autonomy while maintaining transparency and working in coordination with public financial authorities. According to him, this balance will help build credibility, foster investor confidence, and keep inflation under control.
Dr. Weerasinghe warned that unless the lessons of the past are taken seriously and the Central Bank’s independence is strictly protected, Sri Lanka risks repeating the mistakes that led to the economic collapse just three years ago.
