CB to maintain good rapport with IMF
Indunil HEWAGE
Central Bank Governor Ajith Nivard Cabraal said Sri Lanka is going to
have discussions with the International Monetary Fund (IMF) this year to
plan out its future engagements with the institution.
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Ajith Nivard Cabraal |
For the first time, Sri Lanka was able to successfully complete the
US $ 2.55 billion stand-by arrangement received from IMF within a three
year period without burdening the country.
The IMF programme started in 2009 and ended in 2012.
Cabraal said, “we will in addition keep on taking steps that are
necessary to maintain inflation in a single digit level and mid single
level as we go alone in the next few years.
“We would like to see the country being in a growth path in a
continuous basis as well. The unemployment rate in the country is also
expected to come down below the three percent mark by 2016. To determine
the exchange rate, we would allow market forces to play its role. But at
the same time, we would however intervene in the event that we find
there is a too fast depreciation or too fast appreciation.
“The Central Bank monetary policy will also be conducted within the
current monetary targeting framework.
“Today the world is moving towards ensuring that there is more
monetary targeting, repositioning of monetary targets is today being
understood and welcomed as an important factor in monetary policy
transition.
“We will be considering making some changes within the year,
particularly the lengthening of the current one week reserve maintenance
period to two weeks, conducting regular term options and enhancing
operational capabilities to manage day to day liquidity in a more
effective manner. |
