Central Bank rejects S&P claims
The Central Bank said yesterday that claims by Standard and Poor's
credit rating agency about the country's fiscal indicators were totally
wrong and misleading.
"This is completely a wrong and weak analysis, without analysing the
data properly," Nandalal Weerasinghe, the chief economist and director
of the economic research department at the Central Bank told Thomson
Reuters. "At the beginning of the year we completely objected to their
analysis, because they never came here, never had discussion with us.
They are sitting in Singapore and looking at various headline numbers
and then give us the rating.
"Our point is that since they rated us in 2005/06, our indicators
have been improving," Weerasinghe said.
"We have been tightening both fiscal and monetary policies both last
year and this year. Even the International Monetary Fund (IMF) recently
recognised the fact that monetary and fiscal policies contributed to
only less than 16 percent of the inflation in Sri Lanka," Weerasinghe