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Central Bank denies media reports on macroeconomic projection updates

Jul 31, 2020 (LBO) – Sri Lanka's Central Bank on Friday categorically stated that media reports about the CBSL projecting a sizable contraction in GDP and a large expansion in the fiscal deficit for 2020 are totally false, and intended to mislead the public.

The Central Bank stated that they have not released to the public any update to its macroeconomic projections since the publication of the CBSL Annual Report in April 2020.

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"Given the conditions of uncertainty created by the COVID-19 pandemic, frequent updates to macroeconomic projections are required, and the CBSL has continued to monitor standard indicators of economic activity as they become available.

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It has been using unconventional indicators as well on a real time basis in its analysis and policy guidance," the Central Bank said in a statement.
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"However, a key input required for a broad-based revision of macroeconomic projections of the CBSL constitutes the estimates of Gross Domestic Product (GDP) for the first quarter of 2020, to be published by the Department of Census and Statistics.

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Once these estimates become available, the CBSL will publish its revised macroeconomic projections."

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