Former United National Party (UNP) Deputy Leader and Member of Parliament Ravi Karunanayake has urged the government to undertake a comprehensive review of Sri Lanka’s monetary policy framework during the review scheduled for October 2026.
In a letter addressed to President Anura Kumara Dissanayake, the MP outlined several proposals aimed at strengthening monetary policy, enhancing economic stability, and supporting long-term growth.
Among his key recommendations, Karunanayake called for reducing Sri Lanka’s medium-term inflation target from the current 5 percent to a range of 2–3 percent.
He also proposed narrowing the existing inflation tolerance band to improve the credibility, effectiveness, and accountability of monetary policy.
The MP further recommended expanding the objectives of the country’s monetary policy framework to include the accumulation of foreign exchange reserves, mobilisation of domestic savings, capital formation, productive investment, and export competitiveness.
In addition, Karunanayake called for stronger parliamentary oversight by enhancing the Central Bank’s reporting on inflation, foreign reserve accumulation, exchange rate stability, and broader economic performance.
He also urged policymakers to give greater consideration to Sri Lanka’s historical vulnerability to balance of payments crises when formulating future monetary policy, emphasizing the need for a framework that promotes long-term economic resilience and sustainable growth.
