- Sri Lanka’s inflation is lower than projected in 2024, despite a VAT hike
- Central Bank Governor Nandalal Weerasinghe stated that the impact of VAT has not been significant
- Inflation is expected to remain around 4-5 percent in the next 12 to 18 months
- The central bank has cut its policy corridor by 50 basis points to 8.50 and 9.50 percent
- Sri Lanka’s central bank is currently providing monetary stability and cautiously lowering rates
- Analysts warn about flawed operational frameworks and the potential for crises due to lack of penalty rates for standing facilities
Source: economynext.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
