The current low inflation environment and muted inflation pressures have created some space for fiscal as well as monetary stimulus to boost dampened economic activity, Governor of the Central Bank of Sri Lanka, Professor W D Lakshman said.

“The Low level of inflation contributes to maintain a stable political condition in the country and the low inflation environment and muted inflation pressures also create some space for fiscal as well as monetary stimulus to boost economic activity,” Prof. Lakshman stated whilst addressing the 61st Annual General Meeting of the National Chamber of Commerce, in Colombo, on Tuesday (21).

Further, he said that the CBSL would continue its current accommodating monetary policy while supporting the government to achieve its growth initiatives.

“The Central Bank given its mandate will continue to strive to maintain inflation within a range of 4-6% through a transparent, coherent and accountable monetary policy framework going forward.”

"On the other hand, the Central Bank is also actively facilitating several growth initiatives of the government,” he said.

“The government has identified the support needed by the Small and Medium-scale enterprises from the Banking sector. The most recent action on this line is the special credit support scheme extended to eligible SMEs,” Prof. Lakshman added.