“Sri Lanka needs to be successful with 17th bailout plan”

The country is gradually coming out of the crisis but not out of the woods yet but making some progress, Central Bank Governor Dr Nandalal Weerasinghe opined delivering the keynote speech at the Asian Development Outlook 2023 launch hosted by the Asian Development Bank in Colombo on Tuesday.

He said the reason for the deep economic crisis, especially last year was the long-term economic imbalances the country had to face. Sri Lanka has been experiencing a recurring balance of payment crisis and that was why the country had to seek bailout packages 16 times previously and this is the 17th time. He said the difference this time was that the country is also in a sovereign debt crisis both coming together.

“That’s why. It’s much more difficult and complex this time compared to the 16 plans that we had in the past, ” he cautioned. The Governor said if the country won’t be able to get it right the first time it will be a long battle. He said several countries who underwent this process have stabilized with a lot of pain. “But for Sri Lanka, I don’t think we have a second chance,” Dr Weerasinghe noted.