Sri Lanka economic activity recovering: Central Bank
ECONOMYNEXT – Sri Lanka’s economic activity is recovering with tea, paddy and rubber production up, a purchasing managers’ index showed both manufacturing and services sectors were recovering and exports and imports are also up, a central bank said in a presentation.
Worker remittance were up and tourists arrivals were just beginning.
Electricity generation was starting to improve showing higher demand.
External trade was recovering, the central bank said.
Sri Lanka was also doing Coronavirus vaccinations.
Meanwhile the central bank said had also bought dollars in March from the market. The rupee hit 200 in March.
Interest rates were at a historic low.
Analysts have raised concerns over the low interest rates enforced by ‘monetary policy’ (printing money) amid an external drain in the credit system.
Any economic recovery would make the imbalance greater.