Govt. denies claims of fresh borrowing and money printing

Wednesday, 30 October 2024 00:30 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Vijitha Herath

By Charumini

de Silva

Cabinet Spokesman and Minister Vijitha Herath yesterday dismissed reports suggesting that the Government has resorted to new loans or printed money, calling these claims ‘completely false’.

Speaking at the post-Cabinet meeting media briefing, he clarified that there had been no new borrowing from any country or financial institution.

“The Central Bank’s standard procedure is to issue new securities such as T-Bills and Bonds when existing ones reach maturity. This was the case here as well,” he said.

The Minister asserted that the process does not constitute new borrowing, but is a routine financial measure to manage maturing debt.

Herath also addressed rumours about money printing, adding that President Anura Kumara Dissanayake who is also the Finance Minister must sign any newly issued currency notes.

“To-date, no currency note bearing the President’s signature has been issued,” he stated, challenging anyone to produce such a note if it exists.

Refuting reports that Rs. 1 billion was printed, Herath underscored the Government’s commitment to financial transparency, reiterating that no fresh currency had been printed, nor had any new loans been taken out.

It was reported that the Central Bank has injected around Rs. 100 billion against domestic assets through multiple liquidity tools by October 25 driving up excess money in the banking system to over Rs. 190 billion.