6. How are we facing the global turmoil now?
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* We have been regularly examining our country’s financial relations with
all our counterparties and financial institutions to anticipate any vulnerability. We have now been able to confirm that such relationships are very minimal and that we have suffered no damage. Nevertheless, we are aware that that is not a reason to be complacent and shall continue with our efforts in that endeavour.
We are constantly acting to avoid any liquidity shortfall in the national financial system, and this has been in fact done recently through the partial relaxation of our very tight monetary policy in order to increase the supply of liquidity to the market in the face of the global challenges. Such a measure is not unique to Sri Lanka, and in fact, Central Banks and Governments of many countries have embarked on this type of policy measure. For example, the USA recently approved the supply of US$ 700 billion to the market while the UK injected Sterling Pounds 86 billion.
* The Central Bank of Sri Lanka also conducts on-going discussions with the commercial banks that are having relationships with external banks and have repeatedly requested them to take necessary measures to ensure safety.
