The National Dialogue on the Promotion of Investment and Development of Sri Lanka jointly organised by the International Labour Organization and Sri Lanka Chamber of Commerce was held in Colombo under the patronage of Central Bank Governor Dr. Nandalal Weerasinghe recently.
The Central Bank Governor said “One of the main objectives of the Central Bank was to take decisive measures to control rising inflation and balance of payments deficit.
Rising inflation and shortage of foreign exchange were two major problems we faced. Therefore, we had to take many decisive measures to prevent inflation from rising out of control.
Inflation which went up to 70 percent is now at 30 percent.
Inflation will return to single digits by the fourth quarter of this year or earlier.”
Dr.Weerasinghe said correct policy actions are painful considering the steps we have taken, especially raising the interest rates is a difficult and painful step for businesses and it has been solved in the short term.
However, such measures are necessary to avoid a sharp increase in inflation and the dire consequences of economic instability.
With the improvement of the situation in the country, it is hoped that the import restrictions will be gradually relaxed in the future and that the restrictions on capital transactions will also be lifted in the same manner and these two things will help increase business growth, he said.