Publishing its Policy Agenda for 2025 and Beyond, the Central Bank of Sri Lanka says Sri Lanka has made a significant recovery after enduring its worst economic crisis in history.
Providing a summary, the Central Bank said macroeconomic stability that was restored through decisive policy action and collective resolve has laid the foundation for a stronger, more resilient economy. Leveraging on the stability achieved, the country is making notable progress by continuing with the economic reform agenda, strengthening its economic buffers, institutions and governance, and building overall resilience for potential headwinds.
The Central Bank further said significant progress was made on the fronts of debt restructuring as well as the Extended Fund Facility (EFF) arrangement with the International Monetary Fund (IMF).
Faster-than-expected recovery in domestic economic activity was supported by renewed business and consumer confidence. General price levels have adjusted down following a period of high inflation, enabling the continuation of the eased monetary policy stance.
External buffers have been built, supported by improved foreign exchange inflows amidst the flexible exchange rate regime. A notable improvement in the fiscal sector performance was witnessed along with efforts to enhance support extended to the poor and vulnerable.
Financial system stability was reinforced through the strengthening of the regulatory framework and improved risk management and monitoring. These achievements are outcomes of the continued commitment and perseverance and the sacrifices made by all stakeholders of the economy, including the general public, in pursuing the economic reform agenda.
The Central Bank pointed out that more importantly, these measures have helped restore investor confidence and set the platform for the long-term transformation of the economy.
While broad-based stability has been achieved, the focus, going forward, would be on fostering sustained growth, which requires driving innovation, enhancing productivity, maintaining a strong commitment to implementing structural reforms, and encouraging greater stakeholder collaboration without compromising hard-earned stability.
The Central Bank added in keeping with its mandate as stipulated in the Central Bank of Sri Lanka Act, it will commit to maintaining domestic price stability and securing financial system stability, thereby playing a leading role in creating an enabling environment for all stakeholders of the economy to thrive.
Full report: https://shorturl.at/Ww8jA (Newswire)