To face global recession which is expected next year Central Bank to implement stern economic policies

• Creditors assure full support to stabilise economy

By Yohan Perera and Ajith Siriwardana

The Central Bank has decided to implement stern economic policies to be in line with the global economic conditions in the face of a global recession which is expected next year, State Minister Shehan Semasinghe told Parliament yesterday. 

“Global institutions such as the World Bank and IMF has warned that global economic growth is to come down to 3.6 per cent at the end of 2022 and to reduce further up to 2. 7 per cent in 2023. Central Bank will implement stern economic policies to face this situation,” he said.

Referring to a recent meeting he and the Sri Lankan delegation had with the creditors, the State Minister said these creditors of Sri Lanka has pledged maximum cooperation for Sri Lanka in stabilising its economy. The State Minister said the country has been able to resolve issues with the private creditors. We will have to come to an agreement especially with the bilateral creditors by next month in order to secure assistance from IMF,” he said.
“We have also requested the donors to consider Sri Lanka as a low-income earning country so that it would be possible to secure concessional borrowings,” he added. “The steps which the government will have to take in order to stabilise the economy will not be popular. However, we will take these steps for the sake of the nation,” he also said.

The State Minister who responded to Chief Opposition whip Lakshman Kiriella who requested a parliamentary debate in the economic situation said the government is agreeable to another debate on it.