Courtesy Hiru News

Central Bank Governor Dr. Nandalal Weerasinghe stated that there will be no change in the decision to import vehicles. Speaking at a Central Bank news conference today, he confirmed that the bank holds sufficient cash reserves. He also announced plans to consolidate the policy interest rates into a single rate this year.

“We now see strong evidence that the economy will be growing well over 3% but it is too early for us to project a specific number,” Governor P. Nandalal Weerasinghe said, adding that CBSL will not announce any revision to its 3% GDP forecast for 2024.

However, the government may provide an updated growth view when the budget is presented by the new finance minister, he added.

“The Board observed that inflation is likely to remain well below the target of 5% over the next few quarters, potentially recording deflation in the immediate future driven by changes to administratively determined prices and easing of supply conditions,” CBSL said in its statement earlier.

Weerasinghe said inflation could breach the lower end of the inflation target band of 3%-7% for two straight quarters as of end-September, requiring the CBSL to explain the reasons to the government as per law.