The Central Bank has been compelled to print money in order to prevent a total breakdown of fuel supply in the country, as the Ceylon Petroleum Corporation (CPC), does not have sufficient rupees to buy dollars for fuel purchases, Central Bank Governor Dr. Nandalal Weerasinghe said.
Addressing the media at the Central Bank on Thursday Dr. Weerasinghe said that the CPC had requested Rs. 217 billion from the Treasury for the purpose and the Treasury was unable to supply such a huge amount immediately.
He stated that the Treasury in turn had made a request to the Central Bank and the only way for the Bank to fulfill that request is to print money.
The Monetary Board of the Central Bank responded positively last week to another request by the CPC for Rs. 185 billion for fuel purchases, as there would be a grave situation in the country if that request was turned down, the Governor said.
He added that the Central Bank was not in a position to turn down the latest request as well due to the dire situation the country is currently faced with. (Daily Mirror)