Central Bank of Sri Lanka union calls for calm and political stability

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ECONOMYNEXT – Sri Lanka’s Central Bank Executives Union has called for an end to mob violence, action against those who incite it and the restoration of political stability.

“After consistently ignoring the recommendations of the professionals at the Central Bank of Sri Lanka (CBSL), the responsible parties have taken the first step to conclude a program with the International Monetary Fund (IMF),” the executive union of the agency.

“We strongly underline the importance of formulating and implementing medium and long-term economic and structural reforms to deal with the current acute economic crisis and reduce the risk of a recurrence.

“In the short term, the political authority in power has the responsibility to provide the basic necessities of life for the people and to maintain social stability.”

Sri Lanka has a loosely pegged exchange rate regime or a flexible exchange rate with conflicting monetary and exchange rate policy which requires bailouts from the IMF whenever conflicts escalate and the credibility of the exchange rate is lost.

The full statement is reproduced below.

Press release

Our Union condemns with vehemence and contempt the despicable attack by mobs, instigated and directed by certain politicians, against peaceful demonstrations which have been going on for more than a month, aimed at the untimely implementation of political measures, pressure intense on the lives of the general public and force the government to take positive action. We also stress the importance of conducting an independent investigation to identify the perpetrators of these attacks and bring them to justice without delay.

After constantly ignoring the recommendations of the professionals of the Central Bank of Sri Lanka (CBSL), the responsible parties took the first step to conclude a program with the International Monetary Fund (IMF).

We strongly underscore the importance of formulating and implementing medium- and long-term economic and structural reforms to address the current acute economic crisis and reduce the risk of a recurrence. In the short term, the governing political authority has the responsibility to provide the basic necessities of life for the people and to maintain social stability.

In addition, the approval of effective measures, as soon as possible, such as collaboration with the IMF and the World Bank, the conclusion of bilateral or multilateral agreements with allied countries is essential. However, engaging in activities that violate freedom of peaceful assembly, freedom of expression, etc., and enforcing repressive laws that encourage such violations can undermine international cooperation.

Representing CBSL executives exclusively, our Union continues to extend its technical assistance by taking all progressive measures to strengthen the entire financial system and the already fragile economy.

In such a situation, Parliament has a greater responsibility, including political restoration
stability and the enactment of laws to implement the required reforms. Under this, it is imperative that the procedures for appointing the heads of the independent public institutions that should essentially be depoliticized, including the Governor of the CBSL, and the members of the Monetary Council, are properly in place as well as the promulgation of the draft of ‘Central Banking Act’ (Draft).

As the Union of Central Bank Leaders, we urge all political parties and groups to contribute actively and genuinely to resolving the current economic crisis, as it would be impossible to achieve economic stability without political and social stability.

After constantly ignoring the recommendations of the professionals of the Central Bank of Sri Lanka (CBSL), the responsible parties took the first step to conclude a program with the International Monetary Fund (IMF). We strongly underscore the importance of formulating and implementing medium- and long-term economic and structural reforms to address the current acute economic crisis and reduce the risk of a recurrence.

In the short term, the governing political authority has the responsibility to provide the basic necessities of life for the people and to maintain social stability.

In addition, the approval of effective measures, as soon as possible, such as collaboration with the IMF and the World Bank, the conclusion of bilateral or multilateral agreements with allied countries is essential. However, engaging in activities that violate freedom of peaceful assembly, freedom of expression, etc., and enforcing repressive laws that encourage such violations can undermine international cooperation.

Representing CBSL executives exclusively, our Union continues to extend its technical assistance by taking all progressive measures to strengthen the entire financial system and the already fragile economy.

In such a situation, parliament has a greater responsibility, including restoring political stability and enacting laws to implement the required reforms. Under this, it is imperative that the procedures for appointing the heads of the independent public institutions that should essentially be depoliticized, including the Governor of the CBSL, and the members of the Monetary Council, are properly in place as well as the promulgation of the draft of ‘Central Banking Act’ (Draft).

As the Union of Central Bank Leaders, we urge all political parties and groups to contribute actively and genuinely to resolving the current economic crisis, as it would be impossible to achieve economic stability without political and social stability.


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