Senior Advisor to the President on Economic and Financial Affairs, Professor Anil Jayantha has commented that raising funds from the domestic financial market to cover ministry expenses and repay maturing treasury bills and bonds is not an unusual activity.
“The government needs funds to cover day-to-day essential expenses and to continue its services. The Central Bank raises funds every week through the sale of treasury bills and bonds,” Jayantha said.
“Additionally, they make repayments on those that mature on the due date. This is a regular process, and it is continuing as usual. There is nothing special because a new President has been appointed,” he explained.
Jayantha’s comments follow reports indicating that the new government has increased borrowings from international markets.
The senior economist said that no new borrowing has taken place, adding that the media reports of the government obtaining loans from domestic and international financial markets must be investigated.
“What is happening is the normal collection of funds. Apart from that, there has been no special or unusual fund-raising from the domestic financial market,” he said.
Jayantha stated that the Central Bank of Sri Lanka is responsible for stabilizing financial markets and had recently purchased US dollars to achieve this.”
“The recent purchase of US dollars, was done prior to the new President’s appointment. We need to look into that as well. We are also looking into how much money has been raised from the domestic market,” the professor added.