Former United National Party Deputy Leader and Parliamentarian Ravi Karunanayake says he has urged President Anura Kumara Dissanayake to reduce Sri Lanka’s inflation target from 5 percent to 2 percent, arguing that a lower target would better support the country’s economic recovery.
Speaking to the media, Karunanayake said the Central Bank has a key responsibility in managing the country’s economic challenges and should play a more proactive role in promoting long-term economic stability.
He argued that a more innovative approach by the Central Bank during the current economic crisis would benefit both the country and its people.
Karunanayake said he had previously requested the President to revise the inflation target when the existing agreement between the Government and the Central Bank expires in October 2026.
According to Karunanayake, maintaining a 5 percent inflation target is too high for Sri Lanka’s current economic conditions. He said he had proposed reducing the target to around 2 percent, arguing that this would help preserve the value of money and strengthen price stability over the long term.
He further claimed that while his proposal had received a positive response, the Central Bank had questioned the recommendation. Karunanayake maintained that once the Government sets an inflation target through its agreement with the Central Bank, it is the responsibility of the Central Bank to implement the policy.
