Former United National Party (UNP) Deputy Leader and Member of Parliament Ravi Karunanayake has written to President Anura Kumara Dissanayake outlining his views on Sri Lanka’s economic challenges and presenting international comparisons on inflation management.
In the letter, Karunanayake highlighted the inflation targets adopted by several regional and global economies, arguing that stable and predictable inflation is essential for long-term economic growth.
According to the MP, India maintains an inflation target of 4 percent with a tolerance band of plus or minus 2 percent, while Indonesia targets 2.5 percent with a similar fluctuation range.
He noted that Thailand maintains an inflation target of 1–3 percent, while Malaysia has historically kept inflation within the 2–3 percent range. Vietnam, he said, generally aims to keep inflation below 4–4.5 percent, while China’s current inflation rate stands at approximately minus 0.4 percent.
Karunanayake also referred to the inflation targets maintained by several of the world’s leading central banks.
According to the letter, the European Central Bank, the Bank of Canada, the Bank of England, and the U.S. Federal Reserve all target an inflation rate of 2 percent, while the Swiss National Bank seeks to keep inflation below 2 percent.
He stated that these policy frameworks are built on the common principle that long-term economic prosperity is best supported by low, stable, and predictable inflation, supported by credible monetary policy and sustained confidence in the domestic currency.
The observations were included in a broader set of proposals submitted to the President on measures to strengthen Sri Lanka’s monetary policy framework and support long-term economic stability.
