Former UNP Deputy Leader and former Finance Minister Ravi Karunanayake has criticized the Central Bank’s monetary policy, warning that its current approach may not provide sufficient relief to the economy and the public in the near term.
He noted that the Central Bank has maintained its 8.75% deposit and lending facility rates, while officials have said it will take time for the effects of tighter monetary policy to spread across the economy.
Karunanayake also pointed to the IMF’s expectation that inflation will decline by 2027, arguing that relying mainly on market forces to restore stability could further worsen the difficulties faced by ordinary people and businesses during the recovery period.
