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Thursday, October 6, 2022

Inflation to peak now, then decline – CBSL Governor

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‘Sri Lanka’s inflation would soon reach its peak and will start climbing down towards the latter part of this year or early 2023, Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe said.

Addressing the ‘PIMA Strategic Forum’ organized by The Alumni Association of the Postgraduate Institute of Management, in Colombo on Tuesday, he said that Sri Lanka’s inflation is currently high and if it goes beyond 100% no one will be able to conduct business in Sri Lanka and hence prudent measures are being taken to curtail this. “One measure we adopted was to raise interest rates and also to build up foreign reserves.”

“We now expect inflation to further peak for a short period and then come down towards the end of this year or early part of 2023.” He emphasized that the Sri Lankan government also paid great concern towards safeguarding the vulnerable segments of the community to ensure that they were not affected by the prevailing economic crisis. He said that a crucial meeting with the IMF would be held on Friday on restructuring Sri Lanka’s debt with a view to obtaining an International Monetary Fund (IMF) bailout. “We are also seeking support from the international community to assist us in expediting the IMF programme.”

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