ECONOMYNEXT – Sri Lanka was blocked from going to the International Monetary Fund for assistance by the then Presidential Secretary, Central Bank Governor and Treasury Secretary, Finance Minister Ali Sabray said.
“The former Secretary to the Treasury Attigala, former governor Ajith Nivard Carbral and former president’s secretary P.B. Jayasundaradid not wanted to go to the IMF when all most all the cabinet ministers in favor of going,” Sabry told Sri Lanka’s Hiru Televisions.
“They were talking about a home grown solution instead.”
Senior officials have publicly opposed going to the IMF citing budget cuts and currency depreciation.
Ex-Central Bank Governor W D Lakshman, a former economics professor printed unprecedented volumes of money to run down reserves over two years and trigger over 18 percent inflation over two years under so-called Modern Monetary Theory, an extreme form of Keynesian stimulus.
Sri Lanka’s rupee depreciates due to operating a soft-peg and instability has worsened recently under flexible inflation targeting with the rupee falling from 131 to 335 since 2015. (Colombo/Apr13/2022)