The Central Bank of Sri Lanka, has announced key priorities for the coming year for the crisis-stricken island’s economy. The Central Bank released the policy agenda for 2025 where it emphasised inflation stabilization at the 5% target under the Flexible Inflation Targeting (FIT) framework.
The report states that the CBSL has successfully restored economic stability through effective monetary policies, and focus now shifts to fostering medium-term growth. The report adds that deflationary trends, driven by temporary supply-side adjustments, are likely to persist into early 2025. However, inflation is projected to stabilise in the latter half of the year as supply pressures ease and monetary policy remains accommodative.