Sri Lanka on track to flexible targeting – deputy governor

Central Bank of Sri Lanka headquarters
Central Bank of Sri Lanka headquarters
Amithasundar

Sri Lanka is on target to adopt flexible inflation targeting, but authorities would need to redouble their efforts if the 2020 deadline was to remain realistic, senior deputy governor P Nandalal Weerasinghe said today (November 20).

Having experimented with several frameworks over the years, the Central Bank of Sri Lanka currently operates a hybrid system of inflation targeting that uses monetary aggregates as a key signal. It also continues to intervene in foreign exchange markets, although it

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