Sri Lanka growth encouraging, forces in equilibrium: CB Governor

Oct 10, 2013 (LBO) – Sri Lanka’s central bank is encouraged by economic activity so far and the focus is shifting to the next year, Governor Nivard Cabraal said. Consumer prices rose 6.2 percent in the year to September, slowing from a month earlier and the widely watched Colombo Consumer Price Index fell absolutely during the month.

“We have been encouraged by the growth that is taking place. We see that forces are in equilibrium,” Cabraal said.

The Central Bank was confident of realizing a growth forecast of 7.5 percent this year, he said.

In the second quarter the economy was estimated to have grown 6.8 percent by the state statistics office.

A monetary policy meeting scheduled for October 15 will decide if there was “space for further growth” Cabraal said.

“What we are saying is we are more interested in 2014, because 2013 seems to be on track,” he said.

The International Monetary Fund has urged policy rates to be kept on hold for the time being until the effects of earlier easing was seen more clearly.

IMF said structural changes were needed for lasting growth.

The rupee also came under pressure from earlier easing