Dr. Weerasinghe said the prolonged Middle East conflict has had a significant impact on Sri Lanka’s economy, particularly through increasing fuel costs.
He noted that inflation, currently projected at around 5.4% to 5.5%, could exceed 5% and potentially reach 7% if fuel prices continue to rise while consumer demand remains strong.
The CBSL recently tightened monetary policy as a precautionary measure to contain inflationary pressures, he said, adding that moderating demand in the coming months will be crucial to maintaining economic stability.
Dr. Weerasinghe also emphasized that there are no restrictions on remitting legally earned funds to Sri Lanka through the formal banking system.
