Jun 26, 2020 (LBO) – Sri Lanka’s Central Bank yesterday published a detailed statement which contains operational and policy measures undertaken by them thus far, to support the economy, the financial system, and the general public in the midst of the COVID-19 pandemic.
“The Central Bank actively took steps to ease the burden on the general public during this unprecedented disruption of global scale, while preserving the focus on its legal mandate to maintain economic, price and
financial system stability,” the statement said.
The Central Bank says it provided ample liquidity to the market at reduced and concessional interest rates.
“Liquidity injections have been allowed to remain in the money market without being absorbed by the Central Bank in order to expedite credit flows,”
According to the Central Bank, Sri Lanka’s success over the medium term post-COVID will depend on the successful implementation of a reform agenda to address the numerous structural bottlenecks to growth.
“The structural bottlenecks elucidated in the Annual Report of the Central Bank in fulfilling its role as economic advisor to the government will be discussed in a future press statement.”