Ravi Karunanayake says economic management cannot be based solely on concerns over inflation and criticized what he described as an overly cautious monetary approach by the Central Bank of Sri Lanka.
Speaking during an interview with a private television channel, the former United National Party Deputy Leader argued that economic growth requires liquidity and investment rather than excessive monetary tightening.
According to Karunanayake:
“Money is needed to move the country’s economy forward.”
The MP claimed that the Central Bank is currently hesitant to expand money circulation because of inflation concerns.
He argued that:
- Fear of inflation alone should not dominate economic policy
- Restricting money supply too aggressively could slow economic activity
- Growth strategies should focus on correcting structural weaknesses rather than only limiting inflation
Karunanayake further stated:
“That’s not how a country’s economy is run.”
Drawing comparisons with regional economies, he referred to countries such as:
- Malaysia
- Indonesia
He argued that these countries focus more heavily on:
- Investment-led growth
- Development-driven policies
- Expanding productive sectors of the economy
The comments come amid continued debate in Sri Lanka over balancing:
- Inflation control
- Economic growth
- Exchange rate stability
- Investment promotion
- Financial sector reforms
The Central Bank recently increased policy rates and introduced tighter macroprudential measures as authorities seek to manage inflation pressures, stabilize the currency, and protect foreign reserves.
