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US economy recovers:
Growing Indian markets good for SL economy - CBSL Dy Governor
The recovery of the US economy and India's growth prospects are
bright spots for the Sri Lankan economy, which is expected to grow above
5.5 percent during 2015, Deputy Governor of the Central Bank of Sri
Lanka, Dr. Nandalal Weerasinghe told the monthly 'Main Committee'
meeting of the Ceylon Chamber of Commerce (CCC) recently.
He said the UK economy, which buys a major chunk of Lankan apparel
products is faring well and that will also augur well for the local
economy.
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Deputy Governor, Central Bank, Dr. Nandalal Weerasinghe
addresses the ‘Main Committee’ meeting of the CCC. |
Dr. Weerasinghe said that the European economy's slow growth could
have an impact on the local economy, unless Sri Lanka gets the GSP+ and
the ban on fisheries exports to the EU lifted.
The main committee meeting of the Chamber attracts nearly 30 top
corporate executives of the committee.
The top Central Banker also said the Chinese economy which is slowing
down and the Japanese economy, which is showing some rigidity will have
a marginal impact on Sri Lanka.
"The depreciation of the Japanese Yen will impact Sri Lanka, as we
import more vehicles from Japan and the Chinese economic slowdown will
have an indirect impact on Sri Lanka," he said.
The meeting was chaired by the Chairman of the CCC, Samantha
Ranatunga.
The Deputy Governor who is also the Chairman of the 'Monetary Policy
Committee', said Sri Lanka has been maintaining inflation and interest
rates at a single digit in the recent years, effectively managing the
'monetary policy'.
"We have controlled the twin aspects effectively. If the Central Bank
can continue to implement the monetary policy independently, we can
maintain the inflation and the interest rate at the single digit level,"
he said.
"According to him, the Central Bank is closely monitoring the level
of credit growth. Credit growth to the private and the public sector
increased during August.
"We are closely monitoring credit growth, if growth is high, we will
have to tighten the monetary policy. We don't want monetary expansion in
terms of growth in broad money (M2b) to go beyond envisaged levels," Dr.
Weerasinghe said.
CEO and Secretary General of the Ceylon Chamber of Commerce, Mangala
P. B. Yapa and senior chamber officials were also present.
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