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IMF commends Central Bank for keeping inflation under control

Oct 20, 2010 8:24:32 AM - itnnews.lk

IMF has commended the Central Bank for keeping inflation under control and stabilizing economy which allowed interest rates to be cut.

In a statement issued following annual #Article IV” consultations with Sri Lanka, IMF said the island’s recently controlled inflation and an economic recovery can be maintained if state deficit spending can be tamed, giving ordinary citizens to engage in growth creating economic activities. It said the current favorable environment offers a window of opportunity to address remaining macroeconomic challenges and build a strong foundation for private sector-led growth.

In an assessment of the economy, the IMF Executive Directors said this will require continued fiscal adjustment, a more efficient capital market, and an improved business environment. The IMF commended the central bank for bringing inflation under control. IMF said Sri Lanka’s budget deficit was expected to improve to around 8.0 percent this year and was broadly in track for the first eight months. The IMF Directors acknowledged the improvement in fiscal performance.