Sri Lanka's Central Bank Expects Inflation Slowdown

Sri Lanka's inflation pressures are expected to ease materially in the coming months, according to central bank Governor Nandalal Weerasinghe. Speaking with Bloomberg Television in Sydney, Weerasinghe indicated that price growth should converge toward the bank's target range during the second half of the year and continue on that trajectory into 2025.

The central bank chief cautioned that energy markets remain a significant variable in the outlook. Fluctuations in oil prices could pose challenges to the disinflationary trajectory, potentially complicating efforts to achieve the bank's inflation mandates. The remarks come as Sri Lanka continues navigating economic pressures that have challenged policymakers in recent quarters.