Former UNP Deputy Leader and MP Ravi Karunanayake has criticized the government’s 5% inflation target, arguing that it is eroding people’s real incomes and severely affecting pensioners, salaried workers and small depositors.
He said the policy has weakened domestic demand and contributed to delays in the country’s broader economic recovery.
Karunanayake has urged the government to lower the inflation target to between 2% and 3%, saying this could help Sri Lanka move closer to regional economies such as India and Thailand. He also called for a narrower inflation range, greater accountability from the Central Bank, and a monetary policy framework linked to long-term economic growth rather than inflation control alone.
