Governor Confirms: Inflation on Track, Growth Steady

COLOMBO (News 1st); Sri Lanka's Central Bank Governor Dr. Nandalal Weerasinghe has assured the nation that Sri Lanka is on course to meet its inflation and financial stability targets by next year, with economic growth projected to remain healthy and sustainable.

Speaking to News 1st journalist Buddmin Amaradiwakara, the Governor emphasized that the Central Bank’s inflation target of 5% is expected to be achieved in the coming year, and that financial stability has significantly improved compared to the crisis years of 2022 and 2023.

“In terms of economic recovery, economy is continuously growing around 5%. I think that is a healthy economic growth after the crisis happened in 2022 and 2023,” Dr. Weerasinghe stated.

Addressing concerns raised in political circles about rising inflation and unsustainable conditions, the Governor clarified the distinction between short-term inflation fluctuations and long-term targets.

Dr. Weerasinghe revealed that Sri Lanka is likely to surpass key fiscal targets, including the primary surplus and revenue goals, which will positively impact debt sustainability.

He further explained that lower-than-expected fiscal deficits mean reduced borrowing needs, leading to improved debt dynamics and a more favorable outlook for long-term economic stability.