Central Bank Governor Dr Nandalal Weerasinghe has said financial policies the country needs must be implemented decisively, regardless of whether the public supports them.
Speaking at a lecture at the University of Kelaniya, Dr Weerasinghe said avoiding necessary economic measures because they are unpopular could do serious long-term harm, the Daily Mirror reported.
“In the past, we managed to sustain things in certain ways. The Central Bank has implemented strict policies and will continue to do so,” he said. “If a particular policy is fundamentally required by the country, it must be implemented. Failing to enforce it simply because the public likes or dislikes it will only cause harm to the nation.”
Taxes and the cost of unpopularity
Turning to taxation, the Governor said rates sometimes had to rise according to the country’s needs even when most of the public opposed the increase.
He acknowledged such decisions could trigger protests and a degree of social instability, and said the government carried a responsibility to explain the economic implications of raising or lowering taxes.
Independence and communication
Dr Weerasinghe said that with the Central Bank now operating as a more independent institution, it must implement whatever monetary and regulatory measures are required to safeguard long-term economic stability.
“Whatever policy is needed for the country, whether it involves reducing or increasing interest rates, allowing the exchange rate to fluctuate or taking any other measure suited to the current economic conditions, will undoubtedly be implemented,” he said.
He placed weight on public communication as part of that process. “Before implementing a policy, we think about it and make a significant effort to communicate it to the public through our various communication channels. We work closely with the public and the media to ensure that when a policy is introduced, it is communicated in a way that the entire country can understand.”
Public understanding, he said, was essential both to implementing economic policy successfully and to achieving the results intended.
The remarks come as the rupee has depreciated 6.8% against the dollar over the first ten months of 2026.
