Central Bank expects the end of deflation by second quarter 2025
- 5opn1
- December 2, 2024
- Banking and Financial
- Central Bank expects the end of deflation by second quarter 2025
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The Assistant Governor of the Central Bank of Sri Lanka (CBSL), Dr. Chandranath Amarasekara says that they do not expect the deflation to continue for a long time to have an impact on country’s production.
He made these remarks during the recent monetary policy review briefing of 2024.Commenting further, Dr. Amarasekara expressed: “We do not expect deflation to continue for such a long time to have an impact on production. So, I think by the second quarter of the next year, we will see the end of deflation.”
Meanwhile, in response to a question raised by a journalist whether the corporate profitability be impacted if the deflation drags for another year, the Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe said “the cost of production comes down means the profitability can increase.”
Moreover, the CBSL Chief also expressed that Sri Lanka does not need to rely on foreign exchange swaps at the moment, as the country’s official foreign reserves have grown, ensuring sufficient reserve liquidity.
