Former International Monetary Fund (IMF) official Sharmini Coorey (Pictured) noted that in just 20 months, the country moved from uncontrollable inflation and a collapsing economy to achieving less than 2% inflation, surpassing IMF projections.
The orderly foreign currency debt moratorium and strategic interest rate adjustments were pivotal in averting a disorderly default.
The success is attributed to a cohesive approach, with fiscal policies supporting monetary decisions. Despite political challenges, the government raised tax rates, improved collections, and implemented cost recovery pricing in energy, ensuring a sustainable fiscal position. Coorey made these remarks while delivering the 73rd Anniversary Oration of Central Bank of Sri Lanka (CBSL) on 01st November 2023 at the CBSL Head Office in Colombo.
While acknowledging the progress, experts emphasize the need for sustained 5-6% annual growth to escape the high debt burden. The private sector, propelled by export-oriented initiatives, becomes the linchpin for future success. As Sri Lanka embraces this dynamic growth trajectory, cautious optimism prevails, mindful that vigilance is essential to maintain low inflation and drive the nation towards lasting economic prosperity. (TP)