By: Isuru Parakrama
Colombo (LNW): Governor of the Central Bank of Sri Lanka (CBSL) assured that the stability of the country’s banking system will be safeguarded and the public deposits will be protected despite any proposed domestic debt optimisation pending conduction.
The CBSL Chief’s comments come in amidst numerous speculations that Sri Lanka’s banking system is collapsing due to the economic crisis, the worst suffered by the island nation since independence.
Weerasinghe assured that the safety of the public deposits will be guaranteed as “they have always been maintaining.”
“We will ensure any kind of domestic debt optimisation, we will ensure safeguard of the baking system stability as well as the protection of the public deposits,” he added.
The CBSL Chief went on: “I just want to make that statement. And also I think if you can see yesterday Sri Lanka Baking Association also confirmed on the basis of assurances we have given.
I think what is most important is the inflation, now which is coming down faster than we expected. With that we also see interest rates from the peak easing down especially after we announced the complete debt restructuring process we think specially the market interest rates will come down faster so that we are hoping in the second half, interest rates would be normalized in line with the inflation expectations prediction which is a single digit towards the end of the fourth quarter this year.”
He made these remarks during a public lecture on “State of the Economy: Challenges and Outlook as Reflected in the Central Bank Annual Report – 2022.”