Former CB Governor Cabraal spells out strategies to rebuild economy | Sunday Observer

Former CB Governor Cabraal spells out strategies to rebuild economy

17 May, 2020

Former Central Bank Governor and Senior Economic Advisor to the Prime Minister Ajith Nivard Cabraal said four new strategies have been presented to rebuild the economy within a year, which has faced a setback due to the prevailing Covid-19 pandemic in the country.

The major tasks under these plans include: to obtain one to two years grace period to repay the loans (including interest) obtained from the World Bank and the International Monetary Fund (IMF), rebuild the production economy, save capital savings and strengthen the enterprises.

Cabraal said the concession on loan repayment would prevent the outflow of US$ two billion so that the country can be strengthened without delay.

The Senior Economic Advisor said steps should also be taken to prevent the outflow of money to foreign countries and allocate Rs.200 billion to the industrial sector and another Rs.200 billion for the people suffering from acute poverty which would eventually help uplift these sectors.

He said, to strengthen the capital market, steps have already been taken to reopen the Stock Exchange. As yet another feature of our new strategies, steps will be taken to increase the production of all goods which can be made locally thereby strengthening the production economy and the local market. This would also help to circulate money among the people and expand market opportunities.

Cabraal further said the tourism industry should be resumed based on the regulations and methodologies set out by the health authorities. These new endeavours, would help the country to recover from the present economic crisis and rebuild the economy within the next 6 to 12 months, he added.