Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe says in the event of an economic crisis, low-income groups should be protected first and therefore money should be allocated for social security networks to protect them.
He said if economic difficulties faced by low-income groups increase, such groups may take to the streets leading to riots in the country. Therefore, he said dividing the economic burden between high-income and low-income groups, should stabilise the economy by controlling the discomfort caused to the low-income groups.
He also said government revenue must be increased by controlling borrowing. Govenor Weerasinghe said the current inflation should be controlled and the export income should be increased and further emphasised that it is important to manage government income and expenditure.
Dr. Nandalal Weerasinghe added that by restricting imports, the cost of Rs.2 billion last year was reduced to Rs.1.3 billion this year claiming it was possible to purchase essential items such as medicine, mineral oil, and gas. He explained that the current income rate is about Rs.1.2 billion adding it is possible to control state expenditure by restricting the import of non-essential items.
The CBSL Governor further said that solving this crisis is something that cannot be done in two months and believes that these inconveniences must be bourne till at least December this year. He said to avert this crisis, state revenue must be increased to at least 14/15%.
The Governor expressed his views addressing the dialogue held at the Parliament Complex yesterday (31) titled “The Current Economic Status and the Way Forward”.
The programme was organised by the Parliament Secretariat in order to ensure the active participation of Members of Parliament and to create an effective discourse on the current economic situation and the future economic path of the country.