Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe says essential financial policies must be implemented in the country regardless of whether they are popular or unpopular among the public.
He made these remarks while addressing a lecture held at the University of Kelaniya.
The Governor further stated that the Central Bank has already implemented several tough decisions and policies to safeguard the country's economy.
He stressed that the Central Bank would not hesitate to introduce such measures in the future whenever necessary.
He warned that failing to implement essential economic decisions solely due to concerns about public opinion could ultimately cause serious harm to the entire country.
Dr. Weerasinghe noted that tax increases may be necessary depending on the country's economic requirements, although the majority of the public are generally opposed to higher taxes.
He also acknowledged that such decisions could trigger public protests and create a certain degree of social instability.
Therefore, he emphasised that it is the government's responsibility to properly communicate to the public the economic consequences of reducing or increasing taxes.
He said that raising public awareness through effective communication would help ensure the successful implementation of these policies.
The Central Bank Governor also highlighted the importance of introducing tax reforms at the appropriate time, noting that the government must understand that there will always be sections of society opposed to tax increases.
