Budget 2022 will usher tangible relief to people soon: Cabraal

 

Central Bank Governor Ajith Nivard Cabraal yesterday assured that the Budget 2022 will usher in tangible and sustainable relief to people with ongoing and planned measures by the Government to reduce the burden on the masses.

“Global price rise is phenomenal. It is very challenging right now and is causing a serious amount of anxiety among the general public. We have attempted to provide relief by passing on only the most limited amount. Unfortunately, in the current context of the global and local situation, I believe that is the maximum that could have been done,” he said in response to a question posed with regard to no relief being mentioned on the soaring cost of living in the Budget 2022.

Cabraal also said the prime focus is to ensure macroeconomic fundamental stability, particularly for the Rupee.

“If the Dollar exchange rate were to depreciate to Rs. 220, like some people suggest, it will have an adverse impact of 10% on the currency, both in terms of imports and exports,” he said, adding that Sri Lanka imports around $ 20 billion and exports over $ 10 billion annually.

“I believe once stability is ensured within the next eight-nine months, then we could start adjusting those factors gently. Right now, we all need to understand and consolidate. I know it is difficult, even for the Government, with high spending,” he added.

The Governor, however, stressed that long-term benefits should be maintained, such as water and road development projects. “I think it is the balance which is difficult to make, but it is being taken care of,” he said.

When asked about the policies to attract Foreign Direct Investment (FDIs), Cabraal said that although it was not specifically outlined in the Budget 2022, there are many incentives and opportunities already on the table via the Port City Commission Act and SEC Act, passed in Parliament a few months ago.