Finance Minister wants lower interest rates, IMF show of support

Nov 02, 2015 (LBO) – Sri Lanka’s Finance Minister has called for lower interest rates in the island and for the IMF to support the island’s development programme.

Ravi Karunanayake said an IMF growth forecast of 5-5.5 percent for this year was too low, a media report from London said.

He wants the Central Bank to make a big cut in interest rates to as low as 4-5 percent, while the rupee is expected to stabilise and find its own equilibrium, he added.

Foreign reserves could rise to 10 billion dollars from 6.8 billion in September, partly through the 1.5 billion dollars raised through a sovereign bond last month.

Karunanayake had said that the government intends to reduce corporate taxes by “a meaningful proportion” in the upcoming budget this month.