A reversal of the current economic programme will result in the recurrence of the economic and social crisis Sri Lanka faced nearly two years ago, Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe warned.
Dr. Weerasinghe said the ongoing reform process consists of measures to restore the economy which is necessary for medium and long-term growth.
He further said although these short-term reforms are difficult, the commitment of all parties to implement these long overdue reforms is important to guide the economy towards a path of sustainable and comprehensive growth.
“No matter how effective such efforts are, any political or social uncertainty or reversal of the results achieved so far will result in affecting the debt restructuring process and will change the expected course of the economy impacting it irreparably. This will also result in an economic and social crisis like the one we experienced in the last two years to reoccur,” he warned.
The Central Bank Governor pointed out that under the current debt crisis, the government does not have the financial capability to direct the economy towards growth through higher expenditure and tax cuts as in the past.
Dr. Weerasinghe emphasized that re-establishing fiscal and credit sustainability is the primary need now and for the future.
He made the remarks while addressing the 37th Annual Conference of the Organisation of Professional Associations of Sri Lanka (OPA) held in Colombo. (Newswire)
