Sri Lanka central bank governor has resigned in the midst of the country’s greatest economic crisis in decades. The statement by Ajith Nivard Cabraal came after all of the country’s cabinet ministers resigned.
Protesters have also demanded that the country’s prime minister and president resign. Due to a chronic lack of foreign currency, the government has been unable to pay for basic imports such as petroleum. The resignation of the Sri Lanka central bank governor has made the situation so bad.
The island country of 22 million people is experiencing its worst economic crisis since its independence from the United Kingdom in 1948. On Tuesday, the central bank was scheduled to issue an interest rate decision.
On Monday afternoon, a representative for the central bank informed that there were no intentions to postpone the announcement.
Lakshmi Fernando of Asia Securities predicts that the bank would hike its main interest rate by at least two percentage points in order to stabilise the Sri Lankan currency.
Since the currency was devalued last month, it has lost more than 30% of its value versus the US dollar. While the market is expected to be favourable in response to Mr. Cabraal’s resignation, “the key will be who takes over at this stage.”
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