CBSL says Governor’s statement ‘grossly misinterpreted’

The Central Bank of Sri Lanka (CBSL) has issued a statement, clarifying a misreporting of the views recently expressed by the CBSL Governor, Dr. Nandalal Weerasinghe during a recent media engagement.

The media reports in question, which claim that the Governor anticipates a difficult period ahead in the economy, were deemed a ‘gross misinterpretation’ of the views expressed by Dr, Weerasinghe.

“This is a gross misinterpretation of the views expressed by Governor, taken out of the context of the discussion on challenges that the economy could face in the period ahead if the envisaged reforms are delayed or derailed”, the statement read.

It further explained that Dr. Weerasinghe had merely viewed that should there be any delay or derailment from the envisaged economic adjustment programme, which entails growth enhancing reforms, there could be significant downside risks to the envisaged economic recovery, thereby dampening the economic outlook.

“The Governor viewed that the difficult and painful policy measures implemented by the Government and the Central Bank thus far have helped to stabilise the economic conditions, compared to the unprecedented socio-economic tensions witnessed in 2022. Despite these reforms having resulted in significant adjustment costs, causing hardship to the people and businesses in the near term, they were necessary to restore stability, which will accrue benefits to the people and businesses in the period ahead”, the statement read.

Therefore, CBSL has urged the public to refrain from being dissuaded by misquoted media reports published intentionally or otherwise, at this crucial moment of economic recovery from the worst crisis in history.