Central Bank proposes ways and means of overcoming forex crisis

Reduction of working days, discouraging use of private vehicles among proposed measures

Governor of the Sri Lankan Central Bank, Ajith Nivard Cabraal has presented to the Cabinet of Ministers, on Tuesday (22) a set of proposals spelling out how to overcome the current foreign exchange and fuel shortages.

The Governor presented the proposals at a special Cabinet meeting, convened to discuss solutions to the fuel shortages. The Central Bank recommends reducing the working week to four days and to allow employees, who are desk bound, to arrive at work at 9 am and leave by 3 pm.

The Central Bank has also recommended that the use of private vehicles must be discouraged and the government to launch a media campaign to encourage people to reduce the use of fuel.

The proposals also recommend that the country’s two main state-owned banks, the People’s Bank and Bank of Ceylon, should stop issuing loans to the Ceylon Petroleum Corporation (CPC). The CPC owes the two banks around USD 2.8 billion. The Central Bank also recommended that the price of fuel should also be increased.