The Central Bank of Sri Lanka says supply chain disruptions, as well as the removal of price controls, have contributed to the rise in inflation in the country over the past few months.
Senior Economist Janaka Edirisinghe speaking at a media briefing at the Central Bank on monetary policy decisions said inflation is expected to fall in the future as monetary policies tighten.
Edirisinghe said the Sri Lankan rupee has depreciated by 7.2 percent thus far while the gross official reserves of the country are US 2.3 billion.
He said with the easing of travel restrictions the economy is once again restabilising adding that they expect economic growth to increase significantly, by five percent in 2021.
Senior Economist Edirisinghe said the CBSL also expects reserves to grow significantly.