News
CB Governor stresses on need to stay the course
By Rathindra Kuruwita
Governor of the Central Bank Dr. Nandalal Weerasinghe has said the government to be formed should also carry out the reforms that are in line with IMF recommendations.
“The two previous governments discussed with the IMF and wanted to carry out some reforms. If someone tries to divert from the path, the country will get into a deeper mess,” Dr. Weerasinghe said.
The Governor said that the next government must also carry out the reforms and guide the country out of the current economic crisis. He said it was not the time for experiments.
“People should also realise the situation the country was in. A new government could not resolve the economic crisis within a month.The people must be told what the real situation is and what needs to be done. There must be a consensus,” he said.
Dr. Weerasinghe said that given the current forex crisis it would be difficult to purchase adequate amounts of fuel, gas, and medicine.
“We need to manage our expenditure and I think we can maintain some sort of stability. If we keep on importing like this, we won’t have money to buy fuel and other essentials. I also hope that India will keep on helping us. If we get a large forex inflow, things will improve,” he said.
The CBSL Governor said that the continuation of the current political instability will prolong the economic crisis.
“We need to stabilise the macro economy with the help of the IMF. We need to restructure the debt. We need to have a finance minister and a Cabinet to take important decisions regarding these two. When we were talking to IMF, the government changed in May. Now it has changed again. The more this continues, the lengthier the economic crisis will be,” he said.
The CBSL Governor said that they were trying to ensure that there would be no hyperinflation. Inflation would reach 70% in the coming few months and that they have increased interest rates to control inflation.He said that increasing interest rates was the most powerful tool that the Central Bank had to control inflation, but reducing inflation was not something Central Bank could tackle alone.
“We can control the inflation that is created by demand. Right now, the inflation is also created by the high fuel prices, the rapid depreciation of the rupee, gas and fuel shortages. These are the main reasons for shortages. If the electricity bill goes up, inflation will be 70%. This can’t be controlled by interest rates again,” he said.
“If we go into hyperinflation the situation will be much harder than the one, we faced due to dollar shortages. If we go into hyperinflation, no business will be able to continue. We have seen what happens when countries go into hyperinflation. Its chaos and pain,” he said.
Thus, the main task of the Central Bank is to stop hyperinflation. As inflation increases it is mainly the poor, pensioners, and those with fixed incomes that will be most affected, he said.
“Hyperinflation will be bad for everyone. However, it will be worse for the categories I mentioned above. If that happens, there will be serious social issues too as people are laid off,” he said.
As part of the official visit to London for the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026, the Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, held discussions with academic experts from the British Council on Wednesday [20 May 2026].
The discussions focused on strengthening cooperation in education, particularly in the areas of teacher training, English language programmes, education frameworks, and language acquisition skills.
The British Council shared international experience and highlighted its ongoing engagement in Sri Lanka, while expressing readiness to support the country through technical assistance, teacher development initiatives, and policy collaboration.
Discussions also included views on improving quality assurance, expanding research collaboration, and enhancing learning opportunities.
The Prime Minister appreciated the British Council’s continued engagement in Sri Lanka and reiterated the importance of deepening partnerships.
[Prime Minister’s Media Division’
Prime Minister Dr. Harini Amarasuriya, who is currently on an official visit to the United Kingdom, met with members of the Sri Lankan community living in London on Wednesday [20th] and engaged in cordial discussions.
Despite the event being held on a weekday, it was notable that nearly one thousand Sri Lankans representing the Sinhala, Tamil, and Muslim communities attended with great enthusiasm.
Addressing the gathering, Prime Minister Dr. Harini Amarasuriya stated that despite natural disasters and international crises, the present government has succeeded in stabilizing the country’s economy while providing relief to the people. She further noted that Sri Lanka’s political culture has now undergone a positive transformation that is irreversible.
Minister of Women and Child Affairs Saroja Paulraj, addressing the event, stated that a governance system has now been established in the country where all communities are treated equally and the benefits of economic development are shared fairly among all citizens.
Moving away from the traditional method of political gatherings, the event also provided an open platform for members of the Sri Lankan community to directly raise questions and express their views to the Prime Minister and the Minister.
Commenting on the organization of the event, the organizing committee stated that all expenses, including dinner, were borne by the participants themselves. The organizers further remarked that it is unsurprising that opposition groups, accustomed to organizing such events through the misuse of public funds, appear unsettled by this transparent process.
The occasion was attended by the Minister of Women and Child Affairs Saroja Paulraj and Sri Lanka’s High Commissioner to the United Kingdom, Nimal Senadheera.
[Prime Minister’s Media Division]
Prime Minister Dr Harini Amarasuriya currently undertaking an official visit to London, United Kingdom, to participate in the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026 held a bilateral meeting with the Yvette Cooper MP, Foreign Secretary of the United Kingdom ON Wednesday [20]. The Prime Minister was accompanied by Sri Lanka’s High Commissioner to the United Kingdom, Nimal Senadheera, along with officials from the Sri Lankan High Commission.
During the meeting, the Prime Minister conveyed Sri Lanka’s appreciation to the United Kingdom for the support extended in the aftermath of Cyclone Ditwa, including ongoing rebuilding and recovery assistance. The Prime Minister also commended the United Kingdom’s support in facilitating increased bilateral trade and exports for Sri Lanka.
The Prime Minister briefed the UK delegation on Sri Lanka’s recent economic developments and policy priorities, the Government’s commitment to advancing human rights and reconciliation, as well as Sri Lanka’s positive growth trajectory.
The two sides also exchanged views on current global geopolitical developments, challenges in the energy sector, and the importance of enhancing regional connectivity and long-term energy security.
Both sides also emphasised the importance of strengthening structured academic mobility frameworks while ensuring fairness, clarity, and integrity within migration systems.
They also reaffirmed their commitment to further strengthening bilateral cooperation between the two countries in areas of mutual interest.
[Prime Minister’s Media Division]
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