2022-09-11
The debt crisis, or what is known better as the US dollar crisis, is what is threatening the stability of Sri Lanka right now. In a very clear message to the nation, given by way of a press interview, Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe on 11 May has expressed, in no uncertain terms, the danger the nation is in. Within just one or two weeks, the country could sink further into a situation where there can be power cuts as long as 12 hours a day and queues much longer than those being experienced. The rescue time is short. The usable reserve available for use for essential imports is inadequate to meet the demand for basic necessities.
He clearly stated that everything depends on the restoration of law and order and political stability. He quite succinctly stated as to why political stability is an essential condition for carrying out the work that is being done by the CBSL in the recent weeks after his appointment and also what political stability means. He said that in order to put into effect the essential plans for dealing with this critical situation, there is the need for political support for the technical work that is involved.
There is work to be done by the relevant political authorities like the Finance Minister and also certain legislations, which are necessary in order to implement the economic plans proposed by the CBSL. For example, there is an urgent need for change relating to taxation, because one of the immediate causes for the present catastrophic situation was the removal of certain taxes after the present Government came into power.