New monetary policy, IMF comments today

Twin developments today are likely to shape the future course of Sri Lanka’s economy, according to analysts.

The Monetary Board will meet today to decide its stance on monetary policy whilst the IMF will reveal its own conclusions following the $ 2.6 billion Stand-By Arrangement (SBA) review.

Speculation was rife over which tools the Monetary Board will fiddle with to address multiple issues such as increasing reserves via exports, managing the exchange rate and inflation, containing rising credit demand and imports in addition to continuing to boost economic growth to 8% midst worsening external environment and rising oil prices.