In a discussion with Reuters, Central Bank Governor Dr. Nandalal Weerasinghe stressed that there is no need to raise interest rates again this year.
The economy is recovering under the US$2.9 billion International Monetary Fund program, and the aim is to maintain monetary policy in a way that does not hinder economic growth by controlling inflation.
The Central Bank raised interest rates by 100 basis points in May to control inflationary pressures caused by the Iran war situation, he said, noting that it was the first interest rate hike in more than three years.