News
High interest rates keeping businesses afloat – CB Governor
By Rathindra Kuruwita
Central Bank Governor Dr. Nandalal Weerasinghe yesterday told journalists that Sri Lanka was holding discussions with China on debt restructuring and the developments were positive in general.However, the Governor refused to elaborate on discussions with any creditor, stating that specific details of these discussions would affect markets.
“We can’t be specific. We have to maintain ‘radio silence’ to ensure markets are not affected. When we have a concrete agreement we will reveal it,” he said.Dr. Weerasinghe said that they were also continuously discussing with the IMF, bilateral donors and commercial donors.
“The government reached an agreement with the IMF on 01 September. Following that we have taken several steps towards restructuring and discussions with creditors. On 23 September, we made a presentation to our creditors. President Ranil Wickremesinghe has also held several discussions with bilateral creditors and international organizations like the Asian Development bank (ADB). Next week, the State Minister of Finance, the Secretary to the Ministry of Finance and others will go to the IMF and hold further discussions,” he said.
The Governor added that inflation would notably drop in the first quarter of 2023. He also said that inflation would begin to decline from October.Dr. Weerasinghe said that the UNHRC resolution on Sri Lanka would not affect its discussions with the IMF or the World Bank.The Governor also said that the problems faced by the business community had not been created by high interest rates. The problems they were facing had been created by high inflation.
“People complain that they can’t do business because of high interest rates. It’s not true. They can’t do business because of high inflation. The cost of production is high because of inflation. The finance cost of a business at most will be 10%; whereas 90% is transport, raw materials, etc. These have increased because of inflation. If we have runaway inflation, business will collapse. People have to understand why interest is high. If inflation comes down, we can bring down interest rates,” he said.
Dr. Weerasinghe added that the remittances through the banking system were slowly rising. The drop in remittances was mainly due to the open account system and black market.
“These illegal flows are decreasing now. There has been increased black market activity in the past few weeks but this is temporary. Also, I would like to remind you that we are getting more accurate data on remittances. A few years ago, the data said Sri Lanka was receiving around 600 million US dollars a month as remittances. However, there are issues with the way the banks calculated remittances in the past, but now they are calculating right. Previous bank data was problematic and now we are talking to banks about this. Given that more people are leaving the country for jobs, remittances will go up,” he said.The Governor said banks were receiving foreign currency and businessmen and students were allowed access to foreign currency.
“There are still shortages, but you have to remember that a few months ago we didn’t have money for fuel. We think things will continue this way. We monitor the remittances. We hope they come through the banking system,” he said.
A meeting was held to discuss post-disaster planning and the reconstruction process, with special focus on flood-prone areas on Monday [8 th of December] at the Prime Minister’s Office under the patronage of the Prime Minister, and attended by representatives from the United Nations Development Programme (UNDP), the World Bank, and the United Nations Office for Project Services (UNOPS).
During the meeting, the Prime Minister emphasized the critical importance of timely and systematic information and data collection to support timely and effective decision-making on a daily basis following the post disaster situations. The Prime noted that accurate data flows are essential for guiding recovery efforts in the short and long term.
The Representatives outlined the need assessment process using RAPIDA and Global Rapid Post-Disaster Damage Estimation (GRADE), the UNDP’s post-crisis assessment initiated by integrating GIS technology, satellite imagery, and ground-level data, to deliver real-time, actionable insights after a crisis to helps identify affected locations, communities, infrastructure damage, debris estimates, and land use changes-providing crucial data.
The representatives of UNDP reaffirmed their commitment to supporting the Government and they expressed their readiness to collaborate closely and to strengthen ongoing partnerships to enhance the efficiency and effectiveness of post-disaster response and reconstruction activities.
The discussion was attended by the Country Manager for World Bank Dr. Gevorg Sargsyan, Resident Representatives for United Nations Development Programme (UNDP) Ms. Azusa Kubota, South Asia Director for United Nations Office for Project Services ((UNOPS), and Secretary to the Prime Minister Pradeep Saputhanthri, Additional Secretary (Development) Ms Sagarika Bogahawaththa and officials from the Department of National Planning.
[Prime minister’s media division]
News
Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation
The Bandaranaike Memorial National Foundation has donated Rs. 250 million to the Government to support the rebuild of the country following the emergency situation caused by the Ditva cyclone.
Chairperson of the Bandaranaike Memorial National Foundation, former President Chandrika Bandaranaike, together with the Board of Directors, handed over the cheque to Prime Minister Dr. Harini Amarasuriya on 08 th of December at the Prime Minister’s Office.
Subsequently, a cordial discussion was held between the Foundation’s Chairperson, former President Chandrika Bandaranaike, and Prime Minister Dr. Harini Amarasuriya.
The occasion was attended by the secretary to the Prime Minister Pradeep Saputhanthri, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi, and representatives of the Board of Directors of the Bandaranaike Memorial National Foundation.
[Prime Minister’s Media Division]
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Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
The Level III RED landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 1600hrs tomorrow [10th December 2025].
Accordingly,
The LEVEL III RED landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Panvila, Udapalatha, Minipe, Poojapitiya, Gangawata Korale, Thumpane, Doluwa, Pathadumbara, Ganga Ihala Korale, Harispattuwa, Akurana, Ududumbara, Pathahewaheta, Hatharaliyadda, Yatinuwara, Deltota, Medadumbara, Udunuwara, Kundasale and Pasbage Korale in the Kandy district, Yatiyanthota, Rambukkana, Aranayaka, Warakapola, Galigamuwa, Mawanella and Bulathkohupitiya in the Kegalle district, Mallawapitiya, Rideegama and Mawathagama in the Kurunegala district, and Ukuwela, Pallepola, Rattota, Matale, Laggala Pallegama, Yatawatta, Naula, Ambanganga Korale and Wilgamuwa in the Matale district have been extended.
LEVEL II AMBER landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Uva Paranagama, Hali_Ela, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Ella, Haputhale, Lunugala, Welimada, Haldummulla and Passara in the Badulla district, Ruwanwella, Dehiowita, Kegalle and Deraniyagala in the Kegalle district, Alawwa and Polgahawela in the Kurunegala district and Nuwara Eliya, Nildandahinna, Thalawakele, Kothmale West, Mathurata, Ambagamuwa Korale, Hanguranketha, Walapane, Kothmale East and Norwood in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela in the Ratnapura district have also been extended.
LEVEL I YELLOW landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Mirigama, Divulapitiya and Attanagalla in the Gampaha district, Narammala in the Kurunegala district, and Kiriella, Balangoda, Kuruwita, Openayake, Nivithigala, Kaltota, Pelmadulla, Kalawana, Eheliyagoda, Elapatha, Ayagama, Imbulpe and Ratnapura in the Ratnapura district.
Timely and accurate data essential for effective decision making – PM
Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation
Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
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