'CB committed maintaining low inflation with economic growth'

Indunil Hewage

Sri Lanka should have a monetary policy which should be consistent with this nominal GDP growth in the country, Central Bank Deputy Governor Dr Nandalal Weerasinghe said.

The Central Bank is committed to achieve its mission of maintaining low and stable inflation while having sustainable economic growth in the country.

"Central Bank's target for the next two to three years would be to bring down annual average inflation to around 5%.Our target is to expand the monetary base to accommodate envisaged economic growth rate of 7.2 % for this year whilst maintaining inflation at a preferable rate," Dr. Weerasinghe said.

In a bid to achieve Central Bank's mission of maintaining financial system stability in the country, the Central Bank is engaged in supervising and regulating the activities of banks and the non bank financial institutions in the country, particularly to make sure whether these institutions were creating excessive bubbles in the economy.