Central Bank governor Nandalal Weerasinghe has rejected claims that Sri Lanka has become a bankrupt state.
He was testifying last Wednesday before the parliamentary committee on the country’s bankruptcy.
What actually happened last year was not the country becoming bankrupt, but a postponement of selected domestic and foreign loan repayments, Dr. Weerasinghe claimed.
He said he elaborated on that at the Supreme Court hearing into a related case, adding its ruling made no mention about any bankruptcy either.
The verdict details the economic hardships of the people instead, said the CBSL governor.
Revenue of the state was lost and the economy collapsed due to the closure of the country during the coronavirus pandemic, he added.