CB chief slams those trying to mislead public on DDO

Dr. Nandalal Weerasinghe
PIC BY PRADEEP PATHIRANA

• Says too many “bogus” estimates and claims coming from so-called leading research organisations
• Warns not going with current DDO exercise will be detrimental to all sectors, including banking
• Points out other countries not touching superannuation funds does not mean SL shouldn’t
• Expresses strong confidence in SL’s current debt restructuring strategy

By Shabiya Ali Ahlam
The Central Bank chief yesterday slammed the misleading views repeatedly shared by different sections of the economy on the Domestic Debt Optimisation (DDO), doing more harm than good for the country.
Central Bank Governor Dr. Nandalal Weerasinghe did not mince his words yesterday in calling out the entities and individuals who have contributed to the brewing of negative sentiments regarding the whole debt restructuring exercise, which has given rise to 
false impressions.

“There are so many bogus claims. There are several estimates coming from several so-called leading research organisations. They are misleading people. We have been very open and transparent on our part,” said Dr. Weerasinghe.
He expressed his views while addressing CMA Sri Lanka National Accounting Conference 2023, 
last evening.
Dr. Weerasinghe asserted that if the debt restructuring exercise does not go ahead with the strategies currently formulated, the government would be compelled to announce something that would make the situation detrimental to all sectors, including the banking sector.
“There is an opinion that the government will not get the relief from this debt burden.

Our debt is not sustainable; we all know this. If we don’t do something, the government will in no way be able to service the debts,” he said.

A common concern revolves around the usage of the superannuation funds and that Sri Lanka is the first country in the world to touch such funds.
To this, Dr. Weerasinghe responded by stating that just because the other countries that were and are in a similar situation to Sri Lanka have not opted for this route, it does not mean the island nation must stay away from the same.
“All I can say is that if it was not done in Ghana, Argentina or another country, it doesn’t mean what we are doing is wrong. If we can implement the solutions used by other countries that were specific to their problem here in Sri Lanka, we don’t need experts here,” he said.

There is a big misunderstanding on how the government can handle this but we are confident in what we are doing; we are confident with our analysts,” asserted Dr. Weerasinghe.