Situation much better than expected, IMF funds by December CBSL-Governor Nandalal Weerasinghe More Points from Bloomberg Interview 👇

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In a short interview with the Bloomberg Sri Lanka’s Central Bank Governor Dr Nandala Weerasinghe said the following:

  • Inflation to peek in September but according to latest CBSL projections it won’t be touching 70% even after considering electricity price hike
  • Monetary expansion is slowing down
  • Prices are settling down
  • Exchange rate is stabilising
  • No shortages
  • No further interest rate hike needed at the moment
  • Higher contraction on the demand side than expected
  • Will only restructure external debt
  • Can manage without restructuring domestic debt
  • Expects IMF to start disbursing Extended Fund Facility funds by December
  • Banks are in a very good position but going forward if Non- Performing Loans keep rising, in a position to handle situation along with the banking sector
  • Government budget next month
  • November budget (2023 budget) will make strong policy changes
  • Even without external financing can manage essential imports with increase in exports and curtailment of imports
  • More foreign exchange coming through the banking sector, CBSL gradually increasing reserve position

Overall the situation is much better than expected

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