Sri Lanka Has Space to Ease Policy Further, Weerasinghe Says

Sri Lanka’s central bank sees space to ease policy rates further if inflation remains below its forecast, governor Nandalal Weerasinghe said.

The central bank expects price gains to move toward the 5% target over the next four to six quarters, but if inflation remains below projection, “then obviously we see some space for us to relax,” Weerasinghe said at a ReutersNext event on Wednesday.