CB's tight monetary polices have yielded desired results

Ramani KANGARAARACHCHI

The tight monetary policy of the Central Bank yielded the desired results, the Central Bank of Sri Lanka is satisfied that it was able to manage the economy through a period of difficulties in a reasonable and effective manner, Central Bank Governor Ajith Nivad Cabraal said.

He was presenting the Monetary and Financial Sector Policies for 2009 at the Central Bank Conference Hall yesterday.

He said the Central Bank has been able to maintain the growth momentum of the economy to bring forth a rapid deceleration in inflation, and make significant headway in several areas, all at the same time.

He pointed out that 2009, would be an equally testing time with the effects of the showdown in major economies spilling over to all other countries, affecting their performance as well.

He said last year was a very challenging year to the entire world and initial targets set at the beginning of the year had to be revised many times by economies worldwide as the unravelling global financial crisis gave rise to new challenges and un foreseen risks.

Cabraal assured that as done in the past, the Central Bank will continue to strive to better the conditions in the country attaining price stability and financial system stability were the two main objectives.

He said the country could achieve the development it yearns for and sustain the growth momentum in the years to come for the country to become a well developed country in all aspects, before long.