ECONOMYNEXT \u2013 Sri Lanka\u2019s inflation target for the next three years through October 2029 will be maintained at 5 percent and the agreement was signed between\u00a0the government and the Central Bank, the monetary authority said in a statement on Friday.<\/p>\n
The new\u00a0 Monetary Policy Framework Agreement (MPFA) in terms of\u00a0the latest Central Bank of Sri Lanka Act was signed\u00a0between President Anura Kumara Dissanayake in his capacity as the\u00a0Minister of Finance and\u00a0Central Bank Governor Nandalal
\nWeerasinghe on Thursday (01), it said.<\/p>\n
As per the new MPFA, the Central Bank shall aim to maintain quarterly headline inflation rate at 5% with a\u00a0margin of \u00b12 percentage points. This means the Central Bank has to maintain the inflation between 3% and 7%.<\/p>\n
The move comes at a time when the Central Bank has failed to maintain the inflation target at its upper\u00a0limit of 7 percent in the last three months. The Bank has blamed =higher energy price for the deviation following the Middle East conflict.<\/p>\n
As per the new Central Bank Act, the inflation target and related parameters are reviewed once in every three years, or at shorter intervals if exceptional circumstances so warrant.<\/p>\n
\u201cAs part of the review, the Central Bank undertook a comprehensive technical assessment that considered\u00a0 Sri Lanka\u2019s economic structure, historical and empirical evidence, monetary policy considerations, the credibility of the framework, stakeholder views, and international experience and practices,\u201d the Central Bank said in a statement.<\/p>\n
\u201cBased on the findings of the review, the Central Bank communicated its proposal to the Ministry of Finance. The Ministry, after careful consideration, accepted the recommendation.\u201d<\/p>\n
Critics have argued that a 5% inflation target is too high and it should be reduced to 2%. However, the Central Bank has said such reduction would have an adverse impact on the country\u2019s economic growth. (Colombo\/October 02\/2026)<\/p>","protected":false},"excerpt":{"rendered":"
ECONOMYNEXT \u2013 Sri Lanka\u2019s inflation target for the next three years through October 2029 will be maintained at 5 percent and the agreement was signed between\u00a0the government and the Central […]<\/p>\n","protected":false},"author":1,"featured_media":7,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-71","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised"],"_links":{"self":[{"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/posts\/71","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/comments?post=71"}],"version-history":[{"count":0,"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/posts\/71\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/media\/7"}],"wp:attachment":[{"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/media?parent=71"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/categories?post=71"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sripuwath.com\/index.php\/wp-json\/wp\/v2\/tags?post=71"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}