Monday, August 8, 2022
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Governor of Sri Lanka’s Central Bank Submits Resignation Amid Financial Crisis

As the country faces its worst economic crisis in decades, the governor of Sri Lanka’s central bank has announced his retirement.

After all of the country’s cabinet ministers resigned, Ajith Nivard Cabraal made his declaration.

Angry demonstrators have also demanded the resignation of the country’s prime minister and president.

The government has been unable to pay for crucial imports, like as petroleum, due to a chronic scarcity of foreign currency.

The island country of 22 million people is experiencing its worst economic crisis since gaining independence from the United Kingdom in 1948.

On Tuesday, the central bank was expected to issue an interest rate decision.

Demonstrators have taken to the streets of Colombo, the capital, as homes and businesses have been without power for up to 13 hours at a time.

Sri Lankans are also grappling with shortages and rising prices as a result of the country’s sharp devaluation of its currency last month in preparation for bailout discussions with the International Monetary Fund (IMF).

It comes as 26 Sri Lankan ministers have resigned, but neither Prime Minister Mahinda Rajapaksa nor his brother, President Gotabaya Rajapaksa, have done so.

President Rajapaksa issued a statement on Monday inviting all political parties represented in parliament to take cabinet roles to assist in the resolution of the conflict.

Last September, Mr. Cabraal was named the central bank’s 16th governor.

For over a decade, from July 2006 to January 2015, he served as the bank’s 12th governor.

According to the bank, Mr. Cabraal also helped to more than treble the size of the Sri Lankan economy during his first time in office.

“Sri Lanka was able to preserve good and stable macro-economic fundamentals, with inflation kept low and financial system stability attained in a time of acute global uncertainty and volatility” with him in charge, the bank said.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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