Global crisis risks could leave Sri Lanka more vulnerable, Central Bank Governor warns, citing fuel pressure and India’s caution.
Global crisis conditions have made Sri Lanka’s economic outlook highly uncertain, Central Bank Governor Dr. Nandalal Weerasinghe has warned.
He made these remarks while attending the Finance Committee meeting held in Parliament on Friday, June 13.
Responding to a question raised by Acting Chairman of the Finance Committee, MP Rauff Hakeem, regarding the current military situation, the Governor referred to recent comments made by Indian Prime Minister Narendra Modi.
Dr. Weerasinghe said Prime Minister Modi had last week emphasized the need to reduce fuel consumption under the present circumstances.
He further noted that Modi had made that statement despite India holding foreign reserves amounting to around US$700 billion.
The Central Bank Governor warned that if the current uncertain global situation continues, Sri Lanka could be placed in an even more vulnerable position.
He also said it is difficult to predict what may happen during the next three months, given the speed at which global developments are changing.
Meanwhile, Acting Committee Chairman Rauff Hakeem pointed out that India has already instructed public sector employees to work from home.
He said Sri Lanka’s Ministry of Finance should also pay attention to similar measures in response to the developing situation.
