Premature speculations could undermine market confidence – Semasinghe

By Rathindra Kuruwita

State Minister of Finance Shehan Semasinghe has cautioned against premature speculation regarding domestic debt optimisation, which, he says, has not been finalized.Speaking to journalists, on Sunday, Semasinghe stressed the government’s commitment to ensuring the stability of the banking and financial sector. He urged responsible and diligent discussions on the matter, as premature speculations could potentially undermine market confidence.

“The process of domestic debt optimisation is not finalised yet. The government is fully committed to ensure the stability of the banking and financial sector. Recognising the sensitivity, premature speculations without a conclusion could potentially undermine market confidence,” Semasinghe said.

Semasinghe highlighted the progress made in engaging with bilateral creditors for debt restructuring efforts. He expressed optimism that these engagements would lead to favourable agreements that contribute to overall stability.

Central Bank Governor Nandalal Weerasinghe also reassured the public about the safeguarding of public bank deposits and the stability of the banking system in any reorganization of domestic debt. Addressing a public forum, Weerasinghe emphasized that financial sector stability is a key objective of the central bank, and measures will be taken to ensure the protection of public deposits and the overall stability of the banking system.