The Central Bank of Sri Lanka has proposed to the government to introduce a new tax and initiate measures to discourage non-essential and non-urgent imports.
Governor of Central Bank Ajith Nivard Cabraal convened a media briefing today to clarify the decision reached by the Monetary Board to further strengthen the country’s monetary policy.
Speaking during the media briefing, Governor Ajith Nivard Cabraal said Central Bank had proposed a number of measures including further increasing fuel prices and electricity tariffs immediately, to reflect the cost, increasing electricity tariffs, increasing bank interest rates by 1%, initiating energy conservation methods, and increasing government revenue through suitable tax increases on a sustained basis.
Governor Cabraal claimed the recommendation to increase fuel prices and electricity tariffs were proposed due to the services currently being provided at a very low price.
The Governor also said they urged the government to take actions against foreign remittance being sent to the country through unofficial channels.
Governor Ajith Nivard Cabraal also proposed obtaining the maximum amount of funds or aid possible from foreign countries while also encouraging non-debt investments.
CBSL Governor meanwhile, proposed the monetising of non-strategic and underutilised assets, and postponing non-essential and non-urgent capital projects as measures to overcome the current challenges.