Monetary Policy transmission to the real economy in Sri Lanka is still incomplete, Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe stated.
Addressing an event yesterday (August 07), Dr. Weerasinghe revealed that he would like to see private sector interest rates come down further and at a faster pace.
Stating that more attention has been paid to the restructuring of domestic debt, Dr. Weerasinghe indicated that there is an opportunity to further relax the policy rates according to the falling inflation rate.
“Measures were taken to increase interest rates to record highs to maintain the inflation and money pressures that resulted in the economic crisis. In the last two months, policy rates were reduced by about 450 basis points,” he added.
Dr. Weerasinghe assured that Sri Lanka will be able to achieve a stronger performance of the economy than the 03 per cent contraction predicted by the International Monetary Fund (IMF).
He further stated that the Central Bank’s goal is to reach a value between 4 and 6 per cent in terms of inflation. (NewsWire)
