ECONOMYNEXT – Sri Lanka’s central bank should look at credit and liquidity in a new way and maintain price stability with inflation at 5 percnet, Prime Minister and Finance Minister Mahinda Rajapaksa said.
“It is required to reform the banking and financial sectors to ensure availability of credit and financing for the production process and associated transactions,” he said presenting a budget for 2021 to parliament.
“We believe the Central Bank should have a new perspective on the monetary policy regarding money and liquidity management.”
He said the intention was to keep inflation below 5 percent to keep cost of living down and bring national debt down from 90 percent of Gross Domestic Product to 70 percent over a time.
The budget deficit would also be brought down from 9 percent now to 4 percent.
The government wanted to boost growth to 6 percent of GDP. (Colombo/Nov17/2020)