Sri Lanka will be able to successfully manage inflation if global crude oil prices are maintained at around US$80 per barrel until the end of this year, Central Bank Governor Dr. Nandalal Weerasinghe said.
He made this statement while participating in an interview with a foreign media organization in Sydney, Australia.
“If oil prices remain at around $80 per barrel until the end of this year, we can manage the situation. However, if there is any unexpected change, it will clearly be a challenge,” the Central Bank Governor said.
However, the Central Bank Governor expressed his confidence that Sri Lanka’s inflation will gradually decline towards the 5% target expected by the Central Bank in the second half of the year and into next year.
The Central Bank Governor said that the monetary policy measures introduced by the Central Bank in May as well as the steps taken by the government to control imports have led to a positive change in this situation, and that although global uncertainties continue, the tight financial conditions are not expected to have an adverse impact on Sri Lanka’s economic growth, the Central Bank Governor said.