COLOMBO :Monetary policy transmission to the real economy in Sri Lanka is still incomplete, the governor of the country's central bank, Nandalal Weerasinghe, said at a LSEG FX Community Event on Monday.
"We would firstly like to see yields drop in line with policy rates and, from there, decline further. We are waiting to see this reaction from markets," he said.Hit by a severe foreign exchange shortage last year, Sri Lanka's economy crumpled, pushing the central bank to raise interest rates to record levels to counter rampant inflation and currency pressure.
"Sri Lanka has managed to do better than expected before and we are hopeful that Sri Lanka will once again perform better than the projections."
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