The Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, has warned that inflation in the country could rise to around 7% due to the ongoing Middle East conflict and increasing global fuel prices.
Speaking on the “360” programme aired on TV Derana on Wednesday night, Dr. Weerasinghe said the prolonged nature of the conflict has had a greater-than-expected impact on Sri Lanka’s economy.
He noted that rising fuel prices are continuing to exert upward pressure on inflation, which is currently projected at around 5.4% to 5.5%.
The Governor cautioned that if current conditions persist, inflation could move beyond 5% and potentially reach 7%, driven by sustained demand and higher energy costs.
He also said the Central Bank has tightened monetary policy as a precaution to manage inflationary pressures and stressed that controlling demand in the coming months will be essential for maintaining economic stability.
