Dr. Nandalal Weerasinghe, governor of the Central Bank (CB), has issued a warning that the nation may collapse if a stable government is not established soon.
He told the BBC‘s Newsnight programme that there is “a lot of uncertainty” about whether enough foreign cash can be obtained to pay for necessary petroleum. “Progress toward an international rescue package was contingent on having a stable administration,” he stated. The country is gripped by widespread discontent as a result of the economic crisis. Sri Lanka’s economy has collapsed, and the cost of food, petrol, and other basic necessities has skyrocketed for regular people.
“We’ve been able to pay back at least three consignments of diesel, presumably only until end of this month, and one or two shipments of petrol,” he said. “But other than that, there really is a great deal of uncertainty about whether we’ll be able to provide adequate foreign currency to continue funding essential petroleum for this country.”
“If it does not happen, it will be as if the entire country is shut down.” As a result, I require a prime minister, president, and cabinet who can make choices… Without that, everyone will suffer.”
Weerasinghe has been negotiating a refinancing with the International Monetary Fund.
The timetable for that process [depends] on how quickly there will be a stable administration, he added. “We hope to be able to make considerable progress in our conversation with the creditors for debt structuring.
He predicted that Sri Lanka might emerge from its crisis “within three, four, or five months” once a stable government was in place.