Dr. Coomaraswamy lauds stabilisation efforts by CBSL

Thursday, 13 March 2025 00:20 - - {{hitsCtrl.values.hits}}

Former Central Bank (CBSL) Governor Dr. Indrajith Coomaraswamy on Monday praised the banking regulator’s recent monetary policies, calling its efforts in stabilising the country’s macroeconomic environment “remarkable.”

Delivering the first public lecture to mark the CBSL’s 75th Anniversary titled ‘A New Paradigm in Macroeconomic Management’, he lauded the swift, bold decision-making in times of crisis, which reinforced confidence in ongoing efforts to maintain economic stability.

Citing the reduction of inflation from a staggering 70% in 2022 to -4% at present, Dr. Coomaraswamy described the feat as “most impressive” in his five-decade long career.

“I have not come across such an impressive stabilisation in my professional career, which spans well over 50 years,” he said.

He credited CBSL Governor Dr. Nandalal Weerasinghe and his team for their decisive policy measure, acknowledging that while their aggressive monetary tightening initially faced criticism, subsequent events have proven it to be the right course of action.

Dr. Coomaraswamy highlighted that the existing low inflation is largely structural rather than driven by demand-side pressures, with factors such as electricity prices playing a significant role.

Despite the challenges and criticism, he commended the CBSL’s swift and strategic approach in bringing inflation under control, noting that it deserves the highest recognition.