The Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe has outlined the measures to be taken to address the current economic crisis in Sri Lanka.
He provided a breakdown of the necessary steps, including dollar payments, during a media briefing held today.
Following are 14 key facts from the Governor’s press conference:
- The Finance Minister to announce the fiscal consolidation plan next week.
- Measures to be implemented aimed at discouraging the demand for undiyal/hawala system.
- In the process of taking steps to increase dollar inflows into the banking system and address the issue of hawala/undiyal informal transactions outside the banking system.
- Regulations will be imposed to restrict customs clearance of goods who have not used banking channels and have sent US dollars out through hawala or undiyal system.
- Banks have been asked to provide dollars and enable dollar payments for education and health needs.
- Issue in the banking sector at the moment identified as foreign currency liquidity and not rupee liquidity issues.
- The depreciation pressure on the rupee is on the decline along with a drop in imports.
- Payment in US dollars cannot be demanded unless they have special permission under the prevailing law, as “Sri Lanka’s currency is still the rupee”
- The process charging tourists in dollars to be abolished soon as it inconveniences foreign visitors.
- All expatriates requested to send foreign currencies through bank network.
- Ease many restrictions related to dollar transactions when dollar inflows stabilises.
- The Asian Clearing Union agrees to postpone the country’s due payments until end of this year.
- All creditors to be treated equally in debt restructuring including China, India, Paris Club, Non Paris Club. Debt repayment will not commence until the creditors agree on debt restructuring.
- Negotiations will commence with China on its willingness to refinance its debt repayment and only once decided on debt restructuring.
(NewsWire)