“New monetary framework to maintain inflation around 5%”

Increase interest rate a must to build up buffers:
Deepal Nelson re elected as President of NCCSL:

The Central Bank will embark on a new monetary framework to maintain inflation around 5% in the long run, Central Bank Governor Dr Nandala Weerasinghe told the 65th NCCSL AGM held in Colombo.

He said if the central bank did not tighten the monetary policy during the crisis period the country would not have been in this position today. He however cautioned that there is still a sense of uncertainty.

He said that although the move to increase interest rate at that time came under criticism it had to be done to control rising inflation and to build up buffers. He said to maintain stability a strong banking sector was required and the country’s reserves should be further increased.

Guest speaker attorney Jayantha Fernando said the country must endeavor to increase its ICT export revenue to USD 3 billion in the next few years and target USD 15 billion in the next 6 to 7 years.

He said the number of people engaged in the ICT sector as reported in 2021 is 175,000 and this must increase to at least 250,000.

Fernando said the ICT sector has the potential to contribute USD 13 trillion to the global economy by 2030 increasing global GDP by 1.2%.

Local business community showed tremendous resilience in the face of the worst economic crisis, National Chamber President Deepal Nelson said.

He said they appreciated the actions taken by the Central Bank to revive the economy.

At the 65th NCCSL AGM Deepal Nelson was re-elected as NCCSL President.

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