Sri Lanka central bank to get new governor amid economic crisis

Image source, Central Bank of Sri Lanka

The nation is facing its worst economic crisis in over 70 years and the central bank is set to name a new chief.

The new governor of the bank is going to be P Nandalal Weerasinghe.

The head of the bank offered his resignation on Monday after mass protests over rising living costs and power cuts.

The interest rate decision has been put off as policy makers try to fix the currency.

The appointment of Mr Weerasinghe has not been made official by the Central Bank. The bank is waiting for confirmation from the president, according to a spokesman.

Mr Weerasinghe said that he had accepted the role and that he had been offered it.

I will become the governor of the central bank once I return to Sri Lanka on April 7th, he said.

He refused to comment on his plans for the economy of Sri Lanka or when he would make a decision on interest rates.

I need to go back and check it out, Mr Weerasinghe said.

He said that he had already started work.

The deputy governor of the bank, Mr. Weerasinghe, left the role eight years later.

He works as an independent consultant in Australia.

The governor of the bank submitted his resignation on Monday after all of the country's cabinet ministers resigned.

The prime minister and president of the country should step down.

The island nation of 22 million people is suffering from its most serious economic crisis since independence from the UK in 1948.

The central bank was going to make an interest rate decision on Tuesday, but late on Monday they put it off.

Analysts had expected the bank to raise its main interest rate significantly as it tries to control inflation in the country.

The chair of the Advocata Institute thinks the rate will be increased by three percentage points at the next monetary policy meeting.

We are currently facing a crisis of confidence. The new finance minister, central bank governor and secretary to the treasury are welcome, according to Mr. Jafferjee.

With the public angry at the president, one is not sure how the new economic team can fix the ship.

The demonstrators have taken to the streets of the capital as homes and businesses have had their electricity cut for up to 13 hours at a time.

After the country steeply devalued its currency last month ahead of talks with the International Monetary Fund over a bail out, Sri Lankans are dealing with shortages and soaring inflation.

The Prime Minister and his brother did not submit letters of resignation.

The new finance minister was the former justice minister, Ali Sabry.