Colombo, Nov 28 (UNI) Sri Lanka's Central Bank Governor Nandalal Weerasinghe said on Monday that the headline inflation in the battered economy would plunge significantly to 4 or 5 percent by the end of 2023.
Addressing an investors’ forum here, the lead federal banker said that easing inflation in the cash-starved economy would allow the central bank to ease a key currency band as the government needs a "flexible exchange rate".
A statement by the central bank explained that a “tight monetary policy stance” was needed to contain demand-driven inflationary pressure and strengthen disinflation expectations.