Sri Lanka: Central banker issues shutdown warning

Nandalal Weerasinghe, the Governor of Sri Lanka's central bank, has issued a warning that if a stable administration is not formed soon, the island nation would collapse.

According to him, there is "a great deal of uncertainty" regarding the availability of sufficient foreign currency to cover the cost of critical petroleum. Having a stable administration was necessary for progress in obtaining a global rescue package, he added. The nation is experiencing widespread turmoil as a result of the economic crisis. Since President Gotabaya Rajapaksa has left the country, a curfew has been put in place for a second day by acting President Ranil Wickremesinghe.

"We have been able to finance at least three shipments of diesel, probably through the end of this month, and some one or two shipments of gasoline, but beyond that, there is a lot of uncertainty as to whether we even will be able to provide sufficient foreign exchange to finance essential petroleum for this country," he said. "If it doesn't happen, it'll be as if the entire nation is shut down. I therefore require a decision-making prime minister, president, and cabinet. Without that, everyone will experience sorrow.

Talks over a bailout have been going on between Mr. Weerasinghe and the International Monetary Fund (IMF). The timetable for that process depends on how quickly there will be a stable administration, he added, saying "We hope to be able to make considerable progress in our conversation with the creditors for debt structuring".

He predicted that Sri Lanka might emerge from its crisis "within three, four, or five months" once a stable administration was in place. The central bank governor had been speculated to be the next president, but he appeared to dispel that notion by declaring, "I have no interest in... assuming any political role."