Thread by @Economynext

#SriLanka @CBSL chief at #PressClub event - “What we have is a balance of payment crisis. But now it’s has evolved into a political crisis and social unrest”

#SriLanka @CBSL chief at #PressClub event - “Suspending the debt repayment was the best option out of many bad options until we come to consensus with our creditors”

#SriLanka @CBSL chief at #PressClub event - “Suspending the debt repayment mean we do not have to find $2.5 bln for debt repayment this year. But anyway we have to pay for imports.”

#SriLanka @CBSL chief at #PressClub event - “Still the challenge when I took over was to find foreign exchange for day-to-day essentials.”

#SriLanka @CBSL chief at #PressClub event - “Indian petroleum credit of $500 million is expected to be extended by another $500 million”

#SriLanka @CBSL chief at #PressClub event - “Some how we have cleared all the ships awaiting out of the harbour with the money we have got from the @WorldBank. The tight situation will ease in the next two weeks.”

#SriLanka @CBSL chief at #PressClub event - “The parallel exchange rate in the grey market diverted already restricted foreign inflows. These inflows were mostly used for non essential imports.”

#SriLanka @CBSL chief at #PressClub event - “We are trying to access the @IMFNews help in the shortest possible way. But what happened in the country dragged it, but now we see some stability.”

#SriLanka @CBSL chief at #PressClub event - Unless SL comes to an agreement with creditors to bring its debt level to sustainable level, the country won’t be able to get the @IMFNews help

#SriLanka @CBSL chief at #PressClub event - First the advisors will seek the concerns of ISB holders. Then we will have to negotiate with the Paris club and then we have to negotiate with none Paris club like China and India.

#SriLanka @CBSL chief at #PressClub event - The challenge is how SL can survive until the overall plan is executed to make debts sustainable.

#SriLanka @CBSL chief at #PressClub event - This is the country will see the sharpest contraction in the economy because if the shortage.

#SriLanka @CBSL chief at #PressClub event - “#This is challenging period. First challenge is making essentials available. That depends on finance we get. The second one is bringing back the economy back in track which will happens only after IMF program #SriLankaEconomicCrisis

#SriLanka @CBSL chief at #PressClub event - Inflation will be 30-40% for next few months. People will lose jobs. Only export oriented sector will survive. That will help to smooth operations - #SriLankaEconomicCrisis

#SriLanka @CBSL chief at #PressClub event - queue will be less in the next couple of weeks. But it is difficult to say it will be over by this time. #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - On Chinese swap of $1.5 bln, we can’t use that unless you have 3 months of imports #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - under exceptional conditions, Sri Lanka can go for a $4.5 bln programme with the @IMFNews #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - “We have shared with the @IMFNews our intentions on fiscal reforms and other policies. The virtual technical discussions will end tomorrow” #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - At this point of time, the first priority is providing the essentials out of the available reserves.” #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - “We have to convert this import-dependent economy to export-oriented economy” #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - Obviously there is a foreign exchange liquidity crisis and this is spread all over banking sector. In terms of rupees, there is liquidity shortages in some banks. The @CBSL is ready to help if there is a rupee shortage.

#SriLanka @CBSL chief at #PressClub event - There is no need of a finance minister for the current level technical level negotiations with the @IMFNews. But when fiscal policy is discussed, the finmin is important for talks #SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event - The long term solution for the crisis is transforming Sri Lanka into a dollar surplus country by increasing the dollar inflows.
#SriLankaEconomicCrisis
#politicalcrisislk

#SriLanka @CBSL chief at #PressClub event -
“We have tighten monetary policy sufficiently.” #SriLankaEconomicCrisis
#politicalcrisislk