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New Governor stresses need for CBSL independence

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The Central Bank of Sri Lanka (CBSL) had to operate independently, newly appointed Governor of the Central Bank, Dr. Nandalal Weerasinghe said yesterday, addressing the media.

Dr. Weerasinghe added that Sri Lanka’s inflation was expected to reach 25% by next month.

The Central Bank earlier increased the Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 700 basis points to 13.50 percent and 14.50 percent.

The new Governor added that due to increased interest rates the economic growth would be lower.

“Right now what’s important is stability. We need to apply brakes and that’s the objective. It will get worse before it gets better,” he said.

Dr. Weerasinghe added that there were many positives in increasing interest rates, including addressing balance of payment problems.

“Now, the government will be able to raise money from primary auctions,” he said.

Due to low interest rate maintained during the past few years, large companies benefited greatly, Dr. Weerasinghe said.

“Despite the pandemic issues, big corporates made historic gains. This was due to low taxes and low interest rates. People who were saving and paying taxes were funding corporates. Its time to repay.

Everything has trade-offs,” the new Governor said.

Dr. Weerasinghe said that people who were living on savings had been badly affected in the past two years. He added that he was not serving politicians.

Earlier in the day, the Central Bank of Sri Lanka increased the Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 700 basis points to 13.50 per cent and 14.50 per cent.

Issuing a press release the Central Bank said that the rate increase comes into effect from the close of business on 08 April 2022.

The Central Bank said that they noted that inflationary pressures that could further intensify in the period ahead.

These pressures would be driven by the build-up of aggregate demand, domestic supply disruptions, exchange rate depreciation and the elevated prices of commodities globally.

Therefore the bank was of the “view that a substantial policy response is imperative to arrest the buildup of added demand driven inflationary pressures in the economy and preempt the escalation of adverse inflationary expectations, to provide the required impetus to stabilize the exchange rate and also to correct anomalies observed in the market interest rate structure.”



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PM Harini leads panel to protect public services

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Prime Minister Dr Harini Amarasuriya

The newly appointed Cabinet Committee tasked with ensuring the uninterrupted functioning of Sri Lanka’s public service held its inaugural meeting on Thursday (19) at the Presidential Secretariat under the patronage of Prime Minister Dr Harini Amarasuriya.

The Committee convened to discuss strategies to maintain seamless government operations in the face of potential disruptions caused by the ongoing conflict situation in the Middle East, with particular focus on energy resource management.

According to officials, the discussions emphasised sustaining essential government services, ensuring continued service delivery to the public, and addressing the operational challenges faced by public sector employees during the current circumstances. The Committee also examined measures to mitigate any disruptions that could affect day-to-day administrative and service functions across ministries and departments.

Key attendees at the meeting included the Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abayaratne; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the

Prime Minister Pradeep Saputhanthri; Chief of Staff to the President Prabath Chandrakeerthi; and senior secretaries from key ministries including Health and Mass Media, Transport, Highways and Urban Development, Energy, and Digital Economy.

Representatives from state institutions such as the Ceylon Petroleum Corporation were also present, highlighting the government’s focus on energy security as a central priority. The Committee’s deliberations underscored a coordinated approach to balancing uninterrupted public service delivery with effective management of limited energy resources amid the ongoing geopolitical uncertainties.

Observers note that the formation of this Cabinet Committee reflects the government’s proactive stance in safeguarding national administrative functions and ensuring that critical public services remain resilient during times of external pressures.The Committee is expected to meet regularly to monitor developments, evaluate emerging risks, and implement practical measures to maintain operational continuity across the public sector.

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Sajith slams President over war conduct and economic missteps

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Opposition Leader Sajith Premadasa on Friday lashed out at President Anura Kumara Dissanayake in Parliament, accusing him of failing to uphold international law during wartime.

Premadasa said the President’s claim of neutrality ignored breaches of the UN Charter—including Articles 2.4 and 2.7—and other global conventions. “A neutral stance requires openly acknowledging violations,” he argued, criticizing the absence of ethical mechanisms to safeguard international law.

He also questioned the President’s handling of maritime issues, particularly whether Sri Lanka had been informed of the alleged attack on the Iranian vessel IRIS Dena, stressing that the Exclusive Economic Zone (EEZ) permits only peaceful activity.

On the economic front, Premadasa condemned the government for missing a chance to buy Russian oil during a 30-day U.S. sanctions suspension.

He said attempts to advise the Foreign Ministry, including a meeting with the Russian Ambassador, yielded no progress.

Premadasa further ridiculed the government’s earlier dismissal of the QR code fuel system, noting that officials are now adapting to it.

Turning to broader economic concerns, he called for immediate negotiations with the IMF to secure a new agreement, warning that the current primary balance of 2.3 is unsustainable. He stressed the urgent need for a poverty-reduction program, highlighting that one-third of Sri Lankans live in poverty.

He also demanded that surplus Treasury funds be used to support relief packages, arguing billions in reserves could aid households struggling with income shortfalls.Concluding his address, Premadasa criticized the government for failing to prepare for foreseeable crises, leaving the country vulnerable.

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Johnston Fernando, sons held in Lanka Sathosa lorry misuse case

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Former Minister Johnston Fernando, his two sons, and three others were remanded by the Wattala Magistrate’s Court yesterday (20) until April 2, the court confirmed.

The suspects, including Fernando’s elder son Johan, younger son Jerome, and a former transport manager of Lanka Sathosa, are under investigation by the Police Financial Crimes Investigation Division (FCID).

Authorities allege the Lanka Sathosa lorry was misused for operations linked to an ethanol company reportedly owned by Fernando, causing an estimated Rs. 2.5 million loss to the state.

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