Former United National Party Deputy Leader MP Ravi Karunanayake has questioned whether the Central Bank of Sri Lanka’s independent decision-making is creating difficulties for the government, particularly in relation to recent monetary policy decisions.
Speaking to the media, the MP commented on several economic issues, including the Central Bank’s decision to raise policy interest rates.
Karunanayake pointed out that previous governments had faced criticism from opposition groups over inflation, with accusations that excessive money printing had contributed to rising prices.
“For a long time, people said inflation increased because governments printed money. If authorities now say there is sufficient liquidity, adequate reserves and strong export earnings, then why was there a need to increase interest rates in a manner that could further impact economic activity?” he questioned.
The MP argued that if inflation is not primarily driven by excess demand, policymakers should explain why measures that could potentially slow economic growth are being implemented.
He further stated that these questions are being raised from a practical economic perspective rather than a political standpoint.
Karunanayake also questioned whether the Central Bank’s exercise of independence could create challenges for the government’s broader economic management efforts.
His comments come amid ongoing debate over monetary policy, inflation management, exchange rate pressures, and the role of an independent Central Bank in Sri Lanka’s economic recovery process.
