CBSL Chief charts course of Sri Lanka's economy at AmCham Sri Lanka forum

Assures CBSL and Govt. creating necessary buffers in multiple ways to cushion from external shocks Urges private sector to do same as a proactive measure; Stresses "Be positive and be prepared" Calls for greater diversification of markets, products thereby minimising risks to businesses Reveals G2G talks on US import tariff have been positive Dismisses as myth the perception that SL will revert to a crisis being unable to pay external debt after relief period lapses in 2027 Points to SL servicing bilateral debt uninterruptedly and interest components in restructured debt Recalls prior to crisis, SL serviced $ 6 b debt with $ 8 b reserves Debt service commitment for 2025 is $ 2.75 b as reserves have been built up to $ 6.5 b Stresses authorities have established fiscal credibility as well as better predictability in terms of inflation Urges policymakers must ensure consistency in pursuing right policies and continuous strengthening of institutions

- BY NISTHAR CASSIM

CENTRAL Bank Governor Dr. Nandalal Weerasinghe on Monday urged the private sector to build their own buffers in multiple ways to manage the impact from external shocks taking cue from the Government.

Speaking at the AmCham Sri Lanka organised forum, Dr. Weerasinghe said the country in the recent months has managed to build necessary buffers in terms of appropriate monetary policy, enhancing reserves and pursuing prudent fiscal management to face any short-term external shocks which are beyond Sri Lanka's control. He pointed to the announcement of a new import tariff regime by the US as one of the external shocks.

"Likewise the private sector must create its own buffers to face any short term shocks whilst addressing long term goals," CBSL Chief said.

He suggested the private sector in the long-term should diversify markets and products, move to different value chains thereby minimising risks to businesses.

Whilst noting that it was difficult to predict future external shocks, the CBSL Governor also said that both the country and the private sector can only prepare itself to face any eventualities. "Be positive and be prepared," Dr. Weerasinghe stressed during his keynote titled "Charting Sri Lanka's Economic Course."

"Domestically, policymakers must ensure consistency in the pursuing right policies and continuous strengthening of institutions," Dr. Weerasinghe emphasised adding that these two critical factors were among key learnings from the economic crisis in the country a few years ago.

After his keynote speech, Dr. Weerasinghe also engaged in a Q&A with Bank of Ceylon Chairman Kavinda de Zoysa, who has previously served AmCham Sri Lanka Board when he was working at Citi.