Central Bank of Sri Lanka - Annual Report 2006

According to the Central Bank of Sri Lanka's Annual Report 2006, Sri Lanka continued on an economic expansion path in 2006 demonstrating its sustained resilience recording a 7.4 per cent growth rate.

"Despite these favourable developments, emerging inflationary threats posed a serious challenge for policy makers. Therefore, the monetary policy thrust was persistently directed towards curbing the rising inflation pressure and inflation expectations.

"Even in the midst of such threats to price

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