If reserves increased, why not issue dollars?

If reserves increased, why not issue dollars? - MP Dr Harsha de Silva

by Amani Nilar 02-01-2022 | 3:38 PM

COLOMBO (News 1st);  Samagi Jana Balawegaya MP Dr Harsha de Silva questioned as to why the Government cannot issue dollars to release the containers with essential items which are halted at the Port.

Speaking on the current economic crisis in the country, MP Dr de Silva said that the public is currently suffering due to the shortage of essential items and medicines, and since the Central Bank of Sri Lanka (CBSL) announced that the country's reserves have grown to 3.2 billion US $, why it is not possible to import goods now. 

" Why are they hiding the country's dollars? To whom are they going to issue dollars? The market price of the bonds that were to be matured in January has dropped so much that the return on investment is 800% now.," the MP stated. 

Mentioning that people are suffering due to shortages in medicine, gas and fertilizer, the MP pointed out that even Importers have stated that they will not import goods again, in addition to shipping companies demanding payment in dollars.