Clarification for routine fundraising efforts amidst financial market speculation
By: Isuru Parakrama
October 17, Colombo (LNW): Senior Presidential Advisor on Economic and Financial Affairs, Professor Anil Jayantha, has addressed recent reports concerning the government’s borrowing activities, clarifying that raising funds from the domestic financial market to cover expenses and repay maturing treasury bills and bonds is a standard procedure, not an extraordinary occurrence.
Speaking on the matter, Professor Jayantha emphasised that the government’s need to secure funds for essential services and operational costs is ongoing, facilitated through weekly treasury bill and bond sales conducted by the Central Bank of Sri Lanka.
“Each week, the Central Bank raises funds to meet the country’s financial needs, while also repaying those maturing on the due date. This is a regular, routine process that has been in place for years,” Jayantha explained, countering suggestions that recent fundraising efforts were linked to the appointment of the new President.
His remarks followed reports suggesting that the current administration has increased its borrowing from international markets.
However, the Senior Economist dismissed these claims, asserting that no additional borrowing had occurred and suggesting that media outlets reporting such activities were misinformed.
“What we are seeing is the usual process of collecting funds to support government functions. There has been no unusual or special borrowing from either domestic or international markets,” Jayantha said, adding that the media reports of new government loans should be investigated for accuracy.
He also touched upon the Central Bank’s efforts to stabilise the financial market, confirming that a recent purchase of US dollars had taken place to support this objective.
However, he clarified that this action occurred before the new President’s appointment, and remains a standard component of managing the nation’s financial stability.
Professor Jayantha’s comments aim to reassure the public and financial sectors that the current fundraising activities are part of established fiscal management practices, rather than a response to any sudden or pressing financial concern.
He further stressed that the government, through the Central Bank, continues to assess the domestic financial landscape to ensure that these processes remain effective and transparent.
