Dr. Nandalal Weerasinghe Governor of the Central Bank has cautioned that reversing the current economic programme could lead to a resurgence of the severe economic and social crisis Sri Lanka endured nearly two years ago.
Dr. Weerasinghe emphasized that the ongoing reform efforts are crucial for restoring the economy and ensuring medium- to long-term growth.
He acknowledged the challenges posed by short-term reforms but stressed that it is vital for all stakeholders to remain committed to these long-overdue changes to steer the economy towards sustainable and comprehensive growth.
Dr. Weerasinghe cautioned that any political or social instability or rollback of progress made could jeopardize the debt restructuring process and derail the economy’s trajectory, potentially causing a repeat of the recent crisis.
Addressing the 37th Annual Conference of the OPA of Sri Lanka in Colombo, Dr. Nandalal Weerasinghe said that, given the current debt crisis, the government lacks the financial means to stimulate growth through increased spending and tax cuts as in the past.
, Dr. Weerasinghe pointed out that achieving macroeconomic stability alone would not be enough to drive the economy to a high-growth path that could quickly advance Sri Lanka to developed status. He highlighted that, given the current sovereign debt crisis, the government lacks the fiscal space to stimulate economic growth through increased spending or reduced taxes. Reinstating fiscal and debt sustainability remains the primary focus both now and for the future.
