The current economic downturn will ease soon: Cabraal

COLOMBO (News 1st); The Central Bank of Sri Lanka assures that the current economic downturn will ease and the market will stabilize soon.

The Governor of the Central Bank of Sri Lanka, Ajith Nivard Cabraal stated that while the rupee may depreciate in efforts made to give it more flexibility, it could also result in advantages to the country, such as increase in the foreign flow, and in turn, development expected in other sectors.

Taking these issues into consideration, the Central Bank is ready to take decisions according to the challenges that may arise in the future, he emphasized.

Dr. Anil Perera, Director of the Department of Economic Research of the Central Bank stated that while the market may exhibit a turbulence in the near future, the exchange rate will be stabilized soon, in consideration of the reliability of the market and in improvement of market activities. 

"We also urge stakeholders, especially banks, to work closely and co-operate with the actions of the Central Bank to achieve moderation in the market," he added.