Fiscal stimulus should be accommodated without undermining stability- CB Governor

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The new government is to make a statement as to show how the recently introduced fiscal stimulus would be accommodated without undermining stability, Central Bank Governor Dr. Indrajit Coomaraswamy said.

“This fiscal stimulus must be kept in a framework which does not undermine fiscal sustainability and even more importantly it must not undermine debt sustainability. Sri Lanka has never missed a single payment as far as its debt obligations are concerned and we don’t intern to start now. The government will be making a statement as to how this would be accommodated without undermining stability, without leading to a situation where there is overheating in the economy,” Dr.Coomaraswamy added.

Dr.Coomaraswamy noted that the whole rush behind this fiscal stimulus package is to put more aggregate demand into the system to revive the economy.