Premature speculations on finance sector could undermine market confidence – Acting Finance Minister

Acting Minister of Finance Shehan Semasinghe has commented on the recent fluctuations in Sri Lanka’s banking and finance sector, warning that premature speculations without a conclusion in this regard could potentially undermine market confidence. 

Taking to Twitter, the Minister explained that the process of domestic debt optimization is not finalized yet, and that, progress is being made in engaging with the island’s creditors on debt restructuring efforts. 

He noted, however, that while the government remains fully committed to ensuring the stability of the banking and financial sector, owing to the sensitivity of the topic, premature speculations could likely affect market confidence in an adverse manner. 

“Therefore, it is of importance that we speak on this matter responsibly and diligently”, Semasinghe said. 

Speaking on the ongoing discussions with Sri Lanka’s bilateral creditors, the State Minister assured that they are ‘optimistic that the engagements will lead to a favourable agreement to achieve stability’.