Sri Lanka is better prepared to absorb the shocks of the oil price hike than it was during the 2022 financial crisis, Central Bank Governor Dr. Nandalal Weerasinghe said.
Sri Lanka currently has a strong foreign exchange reserve of US$7 billion and has a strong economy due to low inflation, he said.
“There is no specific limit to the level of oil price hike we can withstand. But we are much better prepared than we were in the past. During the 2022 crisis, inflation was extremely high. If a similar shock occurred under those conditions, it would be very difficult to manage,” he told Bloomberg on the sidelines of an International Monetary Fund meeting in Bangkok over the weekend.