Amid rising disaster relief demands, the Central Bank Governor delivers a blunt reminder to the public and businesses: every rupee borrowed must be repaid, and financial discipline is not optional.
The Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, has urged the public to act with a high sense of responsibility when accessing financial assistance and loan facilities provided by the government and the banking system following disaster situations.
Speaking at a seminar held in the Kandy area, the Governor stressed that the government itself does not possess independent funds. He explained that disaster relief, loan concessions and financial support are all funded through tax revenue or loans that the state must repay with interest. Therefore, he said, citizens have a moral and economic duty to use such assistance wisely.
The Governor pointed out that it is the responsibility of beneficiaries to properly manage the funds provided by the government. Although large allocations have been made under current disaster relief programs, he emphasized that people should seek only the amount that is absolutely necessary for their needs, rather than exploiting relief schemes without careful planning.
Referring to past experiences, the Governor reminded the audience that many individuals who obtained loan relief during the Easter Sunday attacks and the Covid pandemic did so without proper financial planning. As a result, a significant number of those borrowers later struggled to repay loan installments and interest, eventually falling into serious financial difficulty. These lessons, he noted, should not be forgotten.
Addressing entrepreneurs and small business owners, the Governor clearly stated that a bank loan is not a free gift. It is a financial obligation that must be repaid in full, along with interest. He advised business owners to take loans only if they are suitable for their actual business needs and within their repayment capacity.
He further cautioned that taking unnecessary loans deprives someone else who may be genuinely in need of financial assistance. Such behavior, he said, weakens the overall financial system and undermines economic recovery efforts.
Concluding his remarks, the Central Bank Governor emphasized the importance of conducting business activities with strong financial discipline, prudent decision-making and a clear understanding of long-term obligations.
