Central Bank officials were taken to task by President Gotabaya Rajapaksa for failing to introduce effective mechanisms that would revive the country’s economy.
The President berated the Governor of the Central Bank of Sri Lanka (CBSL) and other CBSL officials, during a meeting held today, June 16 stating that the Central Banks of other countries, both developed and developing have presented strategies to the government to revive the economy in light of the COVID -19 pandemic and its repercussions, but the CBSL has failed to do the same.
The government owes large sums of money to various institutions,for services rendered these past several years, and he had proposed to the Central Bank that it provides Rs. 150 billion to banks by accepting the outstanding due as collateral. However, the CBSL had not done so.
According to a media release from the Presidents Media Division, the President has accused the Central Bank officials of failing to support the economic proposals of the government. The Monetary and Fiscal Policy of the CBSL must be formulated in accordance with the President’s economic policy, he had pointed out.
“We cannot let the health crisis develop into an economic crisis. What we are facing is a global crisis. The Central Bank and the Treasury are entrusted with the responsibility of formulating right monetary and fiscal policies that are instrumental in economic revival. Many tools have been introduced by the Central Banks in the countries around the world. We have not received such a positive response from our Central Bank. Let me know the measures that need to be taken to confront the crisis without delay.”
The President had told the officials that while the Central Banks of the United States, Japan and Australia and even smaller countries have introduced mechanisms to revive their economies, the CBSL had not submitted a single proposal to help rebuild the economy. While other sectors such as health, security and intelligence had contributed to controlling the COVID-19 pandemic, the Central Bank which has the responsibility of the economy of the country remains idle, the President has charged.
The President, according to the media release has accused Central Bank officials of drawing fat salaries, while shirking their responsibilities. “The Governments have to take the blame for your conduct. You do not monitor. Look at the status of finance companies.”
The CBSL’s failure to monitor and regulate finance companies, the President has said, is the reason why the ETI has been unable to pay back their depositors, the The Finance Company was closed abruptly and also why leasing companies are shirking their responsibilities.
The people, he has said, had given him a lot of power to build the country, and everyone must allow him to do that.
