CBSL resorts to monetary financing amid wait for IMF talks
Central bank promises loan to government will be unwound in the first quarter of 2019
The Central Bank of Sri Lanka (CBSL) has granted the government support with its budget, in a move that could undermine progress towards a flexible inflation target.
The central bank bought 90 billion rupees ($500 million) of Treasury bills in January, saying the measure was designed to assist the government with its financing needs “due to the delay in receiving expected foreign currency financing arrangements”.
The CBSL promised the purchase would be partly reversed in February, and
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