Governor of the Central Bank Dr Indrajit Coomaraswamy during his visit to Jaffna today (July 12), commented on the proposed amendments to the monetary act.
He said that the new draft monetary act has a new section which is entirely focused on the systematic risk in the economy but which is also not there in the old law. He further said that this is what the CBSL does and that by law that the CBSL will be required to monitor the whole system to see where risks are emerging. The governor also responded to questions raised by journalists regarding the proposed construction of the economic corridors.
He stated that the CBSL is not directly involved in the matter but that according to his understanding that he believes there is a master plan for Trinco, Kandy and for some development activity in Kurunegala, the megapolis project for the Western province and also the development around the Hambantota port. Meanwhile, the Central Bank has revised growth down to 3% from 4% as predicted earlier this year.
On February 22nd this year, the Central Bank’s forecast for Sri Lanka’s growth stood at 5%. However, on May 31st, during the 3rd Monetary Policy Review, the Central Bank revised its growth forecast to 4%.
Subsequently, in less than a month, Ratings Agency Moody’s revised Sri Lanka’s growth to 2.6% for 2019.