Sri Lanka focuses on idle state resources to bring in foreign exchange to country
Sri Lanka’s State Minister of Money and Capital Market, and State Enterprise Reforms Ajith Nivaard Cabraal has reportedly stated that the government of Sri Lanka hopes to bring in foreign currency by utilising resources that have been left idle.
“We will make maximum use of the Port City, the Hambantota Harbour, etc. which will help us stabilise the rupee and bring in foreign currency without falling into debt,” the State Minister has said at a press conference. He has further noted that the Sri Lankan government has always managed to successfully pay all loans on time without any risk of late payments.
As for concerns raised with regard to printing money, the State Minister has noted that difficult actions need to be taken in order to bring the country back to a stable environment.
“We do not make idle decisions without consulting experts. We decided to print money because we saw a need for it. These doubts imposed by the opposition will only take place if we keep printing money without control, but the CBSL (Central Bank of Sri Lanka) has plenty of experts that we have consulted prior to making this decision. We are working on these solutions provided by them. Every country has to make this decision at some point, and we as a government have taken the necessary steps in order to provide a sustainable solution and to get back to a state of normalcy,” Cabraal has been quoted as saying.
According to the State Minister, the current situation will stabilise in three to four months.
He has also stated that banks in Sri Lanka have also been informed to be conscious and not allow the rupee to depreciate further. “These shortfalls are temporary. Within the next few months, we are certain there will be an inflow of dollars,” Cabraal has added.
OSL take:
Sri Lanka’s economy has shown great resilience through the years and is once again on the path to recovery after facing the impact of the global Covid 19 challenges. The government of Sri Lanka has also launched an aggressive development programme aimed at taking the country to the next level of development. This has opened up many business opportunities in Sri Lanka. The island is also fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore the growing opportunities in Sri Lanka.
| Article Code : | VBS/AT/08072021/Z_8 |