Economic growth is expected to surpass the target – CBSL

He noted that during the second quarter of this year 2024, the economy grew by 4.7%. In the first quarter, the growth rate was 5.3%. This information was shared during a special media briefing held yesterday at the Central Bank headquarters in Colombo.

Initially, it was projected that the economy would grow by 3.1% at the start of this year. The current figures indicate that growth has exceeded 4%, suggesting that more positive growth can be anticipated in the future, according to Weerasinghe.

It has also been decided to maintain the current interest rates. Accordingly, the statutory deposit facility stands at 8.25%, while the statutory lending facility is at 9.25%.

The Central Bank Governor indicated that market interest rates are continuing to gradually decline. Although there was a slight increase in government securities recently, they have returned to normal levels. The lending interest rate has now reached 12%, which is considered a healthy level.

In the past six months, foreign remittances have exceeded 500 million rupees. By the end of August, the total foreign reserves amounted to 6 billion dollars. The Sri Lankan rupee has continued to strengthen, showing an appreciation of 7.9% this year.

The Governor also mentioned that it is a priority to continue the extended loan facility with the International Monetary Fund and to expedite the debt restructuring process. He expressed optimism that the external sector of the economy will continue to strengthen.