A critical financial crisis by the middle of the year!

Despite the government’s estimate to obtain a loan of more than 7,000 billion rupees for this year, this would not be achieved, and warnings are that a severe public financial crisis may be created.
According to analysts, the basis of this financial crisis is the government’s inability to obtain loans from the Central Bank of Sri Lanka by ” money printing ” and the government’s inability to obtain foreign loans as expected. After signing an agreement with the IMF, the government expected to get more loans from international financial institutions, including the World Bank and the Asian Development Bank. But now, it has fallen to an impossible level.
After adopting the Central Bank Independence Act, obtaining domestic credit has also become a severe challenge to the government. Based on this situation, analysts have pointed out that the ability to borrow to cover government expenses in the future will fall to a very low level. It is revealed that the Treasury has made available a confidential report in this regard to President Ranil Wickremesinghe.

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