Wed, 04 Oct 2023

COLOMBO, Aug. 18 (Xinhua) -- A number of decisions have been taken to improve the Sri Lankan economy and they are now seeing the result of such decisions, said Central Bank Governor Nandalal Weerasinghe here on Thursday.

"During the last review, we thought the inflation will reach 70 percent. However, now we believe that the inflation will not be that high even with the electricity tariff hike," Weerasinghe told the media.

The central bank governor said that inflation driven by demand has lessened because they have controlled the expansion of loans, and supply side inflation will drop with price and foreign exchange stabilization.

Weerasinghe said that the severe shortage in foreign income has improved and the country is now in a position to import fuel, gas and medicines.

"This is possible because of the decisions we took. The imports have lessened. Export revenue has somewhat increased. Even without short term loans we have been able to cover our basic needs. This is a positive development," he said.

Weerasinghe urged exporters to bring back the foreign exchange earnings and that they are monitoring whether exporters are adhering to the bank's regulations, adding that the foreign exchange liquidity in the banking sector has increased.

The governor also said that negotiations with the International Monetary Fund (IMF) have made good progress and an IMF delegation is expected to visit Sri Lanka by the end of this month to reach a staff-level agreement.

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