Nandalal Weerasinghe Sri Lanka 2020 economy Assurant Nandalal Weerasinghe Sri Lanka

Sri Lanka may miss IMF December deadline, but will make request in January 2023 – CBSL Chief

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COLOMBO (News 1st) – According to the Governor of the Central Bank Dr. Nandalal Weerasinghe, market interest rates have been tightening since last August and the Central Bank has been continuing to tighten their monetary policy since April and July of this year; Central banks engage in tight monetary policy when an economy is accelerating too quickly or inflation is rising too fast.

He predicts that although inflation had climbed to 70% in the last month, this month, it is expected to decline. Sri Lanka seen slight depreciation of inflation since the last weeks of September and this has been controlled and stabilized by the restrictive monetary policy.

There was also some uncertainty about debt restructuring and our lack of stabilization (necessary to receive the IMF loan), but now, the Central Bank predicts that there are high expectations to increase market liquidity and a reduction of inflation.

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