CB Governor sees light at the end of the tunnel

The Central Bank would do everything possible to ensure that all stakeholders in the economy benefited, its Governor Dr. Nandalal Weerasinghe said, yesterday, addressing an event held by the ILO and Employers’ Federation in Colombo. He said that the Central Bank’s main objectives were managing inflation and maintaining a healthy balance of payments.

“Among the biggest issues we face are the heightened inflation and the shortage of hard currency. We had to take painful decisions to control inflation,” he said.

Dr. Weerasinghe said that the inflation had risen to 70 percent last year but had come down to 30 percent.

“By the last quarter of this year, inflation will drop to a single digit. The decisions we took are correct but painful. High interest rates are tough on businesses. However, we need to take such decisions to ensure that there is no hyperinflation. We are reaching stability and this is needed to ensure that there is recovery,” he said.