December 21, Colombo (LNW): Governor of the Central Bank of Sri Lanka (CBSL) Dr Nandalal Weerasinghe has called on the public to exercise prudence when accessing government-backed relief payments and concessional bank loans extended to those affected by recent disasters.
Addressing a public forum in Kandy yesterday (20), Dr Weerasinghe stressed that financial assistance, while essential in times of hardship, must be managed responsibly by recipients. He noted that the State has committed substantial resources to support recovery efforts and that these funds should be drawn only to the extent genuinely required.
He reminded citizens that relief schemes are designed to reach a wide range of people in need, and that careful and honest use of allocated funds would allow assistance to be channelled to others facing similar difficulties. Sound financial management, he said, is just as important after receiving support as it is in normal times.
Reflecting on lessons from the recent economic downturn, the Central Bank Governor referred to the period when the tourism sector was supported through low-interest loan facilities. He observed that in several cases, businesses—both directly affected and otherwise—borrowed beyond their actual needs, later struggling to service their debts.
Dr Weerasinghe cautioned that such practices could lead to unnecessary financial strain and emphasised that borrowing only what is essential helps avoid future credit difficulties. He concluded by urging individuals and businesses to use relief funds and loans as tools for sustainable recovery, ensuring that public resources contribute effectively to rebuilding livelihoods and strengthening the economy.
