Friday Nov 15, 2024
Friday Nov 15, 2024
Friday, 3 June 2022 00:00 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
Top economist and former Deputy Governor W.A. Wijewardena yesterday called on the Government to respect the independence of the Central Bank, insisting not to jeopardise the economic revival efforts.
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| W.A. Wijewardena |
Attributing to a recent statement made by Prime Minister Ranil Wickremesinghe that the Government is forced to print money to pay salaries, Wijewardena opined that it had triggered widespread concern among the corporate sector and individuals.
“It (the statement) is like giving a high dose of sugar to a diabetic patient,” Wijewardena told a forum titled ‘Surviving the Current Economic Crisis: Ex-Central Bankers in Dialogue’ organised by CBSL yesterday.
Sri Lanka printed Rs. 1.2 trillion in 2021 and in the first quarter this year, it has printed Rs. 588 billion. Between December 2019 and August 2021, the country’s money supply has increased sharply by 42%.
He pointed out that the quick tax measures announced by the Prime Minister in his capacity as the Finance Minister during this week will not boost the Government revenue, though it might win the confidence of the market.
Wijewardene also warned that the ‘worst’ economic circumstances are yet to come. “The worst period will be felt in the next 6 to 12 months,” he said, urging authorities to update the public on actuality.
Noting that the economic conditions are going to deteriorate further with shrinking income and high inflation, Wijewardena said the population at large were still not aware of the actual economic adjustments that will come into effect in the coming months.
“The public must be informed about the actual changes that they might have to withstand and get their support,” he added.
