CBSL Chief says its measures helped minimize damage from twin crisis

Government Dr Nandaial Weerasinghe yesterday claimed that measures taken by the new administration at the central Bank indeed helped to minimize the damage to the economy from the twin crisis in the balance of Payments and external debt.

Speaking of the Ceylon Chamber of Commerce’s launch of its economic outlook dr. weeknight said the tightening of the monetary policy and other measures by the Central Bank ensured that contraction of the economy in 2022 is limited to a single digit and not double-digit as well as avoid hyperinflation of over 100% inflation.

“CBSL didn’t contract the economy but rather our measures even though difficult helped to minimise the damage to grown and inflation,” Dr Weerasinghe said.

His remarks were an apparent response to criticism against the current regime at CBSL that its policies indeed led to the shrinking of the economy whilst the high-interest rate regime has come under constant flack.