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Central Bank Governor optimistic:
Foreign reserves picking up
Central Bank Governor Ajith Nivard Cabraal said foreign reserves have
picked up in the past several weeks, with money coming from aid flows in
remittances and foreign investments. “That is to meet the humanitarian
needs of nearly 300,000 displaced people in the north,” he said.
The anticipated IMF bail out amounting to US$ 1.9 billion would
certainly ease out capital markets with a quick cash-inflow. However,
Central Bank reckons it’s not the only option out for Sri Lanka.
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Ajith Nivard Cabraal |
“We will never go after donors or lending agencies with a begging
bowl. We are capable of standing on our own and will raise funds through
capital markets,” Governor Cabraal said yesterday.
Sri Lanka, once a war-ravaged nation, is no more a terrain full of
civil strife now. Armed Forces crushed the LTTE and reunified Sri Lanka
as a prelude to continue the Government’s economic war aiming to
eradicate poverty.
However, there was immense political pressure from certain Western
nations against the Government’s humanitarian efforts, and the loan had
been delayed.
The United States is the main shareholder in the IMF and its approval
is key to the release of the money. However, due to adverse LTTE
propaganda, the US approval is yet to come. “Earlier, I expected the
approval despite pressure from the West,” he said.
However, with cash-in-flows from friendly nations the situation has
been easing day by day.
“The urgency for IMF loan is easing. However, I am not saying that we
don’t need it.
“The threat of a downturn is receding and Sri Lanka is getting some
inflows after the end of the war,’ the Governor said.
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