Situation was under control-Cabraal

8 May 2012 11:54 am - 24 - {{hitsCtrl.values.hits}}

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The Central Bank today forecast a higher inflation rate and lower growth for this year stimulated by negative local and global economic factors but added that the situation was under control.

Addressing a press conference in Colombo, CB Governor Ajith Nivard Cabraal said the year-end inflation rate would remain higher than the mid-single digit level.

Commenting on the sharply depreciating rupee against the dollar Mr. Cabraal said the exchange rate behavior in the recent past has been highly speculative and current depreciated value was not in line with the fundamentals.

“Although the revision of the intervention policy from “price based” to “quantity based” led to a rather rapid depreciation of the rupee, it is expected to stabilize with the realisation of foreign inflows in the coming months,” Mr. Cabraal said.

He said because of such policy measures the emerging pressures and risks would be mitigated but GDP growth was expected to moderate this year at 7.2 per cent compared with the original target of 8.0 per cent. Mr. Cabraal the slower recovery in advanced economies and the increase in global-fiscal and financial uncertainties could pose a downside risk and added that unfavourable developments in Sri Lanka’s export destinations in terms of political and economic uncertainties could also hamper in reaching the growth projection.

“The government has taken every possible step to maintain a healthy GDP growth and maintain the inflation to a manageable level. I am sure inflation will not go beyond double digits and the GDP growth will not go further below 7 per cent as the economic fundamentals followed and strong policy measures introduced by the government in February – March period this year have begun to show results,” Mr. Cabraal stressed. (Sandun A Jayasekera)
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Comments - 24

Mike Tuesday, 08 May 2012 12:02 PM

Kabba is not suitable to a grocery cashier

Gunthar van haasen Tuesday, 08 May 2012 12:14 PM

papa pa pae.. papa pa paeee. papa pa paa pa pa paeee ...PAAN

Kangaroo2 Tuesday, 08 May 2012 12:14 PM

Ya you better go home and do something els

economist Tuesday, 08 May 2012 12:19 PM

Firstly if it goes beyond double digits its called 'Hyper-inflation'. Secondly, In any economically developed country, the reserve bank (or central bank) is independent from the government! This central bank needs some serious 'balls'!

Kondeybendapucheena Tuesday, 08 May 2012 12:19 PM

For God sake Please do not open your Mouth We don't want to listen to Baila any more.you have proven you are a just accountant that is all

Faz Tuesday, 08 May 2012 12:26 PM

You submit resignation notice and go home.

alisten Tuesday, 08 May 2012 12:29 PM

You are not a economist Mr, You are are just a chartered accountant. Please resign. There are lot of Srilankan Professiors have Phd in economice. They shoudl come to the post. Please resign. Look at your last months report

ravana Tuesday, 08 May 2012 12:29 PM

Cabraal missile !!!

rambuk Tuesday, 08 May 2012 12:31 PM

what does it take him to resign,,,,

perhaps a unp govt that has better ethics,

cse going down to china town under upfa....

ajja Tuesday, 08 May 2012 12:33 PM

Sri Lanka will not grow until we use our man power for production. Authoroties always try to create goverment jobs.

Why government is giving more and more jobs to graduates.
They give jobs to graduates making new posts in government sector to avoid possible youth uprise in the country.

Who will pay for this ?. We all have to pay for this burden as increased taxes. Sleeping opposition will never talk about this, as it's a political sensitive issue.

Pls stop making government service more and more, People as to take this burden, Do not make this another Greece.

Allex Tuesday, 08 May 2012 12:40 PM

Operation is success, but the patient is dead, HAAAAAAA……

K.M.Rafee Tuesday, 08 May 2012 12:48 PM

Both Cabarala and PEE bee must awarded the highest honour of the land for managing our economy so well. Our tributes to ICA and institutions awarding Doctorates

Roy Tuesday, 08 May 2012 12:55 PM

He is an accountant not an economist

errr..economist Tuesday, 08 May 2012 12:56 PM

Hyper inflation is when inflation for 3 years exceeds 100%......are you sure you are an economist? or are u also like cabraal..talking wothout knowing the basics?

Rasikaya Tuesday, 08 May 2012 12:58 PM

Our Age Economic Baila Chakrawarthi ......

RF Tuesday, 08 May 2012 01:00 PM

Every decision in this country is manupulated. We have a bunch of jokers running most important positions in the country. Sri Lankan will never thrive under the present leadership who is doing everything to stay in power... The best example is trying to have elections in some of the provicial councils despite having number of years to do so.... What a wast of money.... Idiots.....

Nuzrath Anver Tuesday, 08 May 2012 01:00 PM

Foreign Currency inflows is nothing to with economic condition in the country. From May to August Sri Lankan people come here to do their vacation. Since it is school holidays. So obviously the rupee value goes up. Cabral is a dumb fool. He is a idiot who cannot manage the central bank.

Silverhawk Thursday, 10 May 2012 05:42 AM

Situation under ultimate control !!

elkoon Wednesday, 09 May 2012 04:47 AM

Well said Sir. Or he should go back to lecturing on 'Management by Objectives'

Nodrog Wednesday, 09 May 2012 04:51 AM

These clowns should stop insulting the general public with their inane comments.

joker Wednesday, 09 May 2012 05:25 AM

It was under control B4 u took over!!!!!!!!!!!!!!!!!!!!
but now out of control after u took over!!!!!!!!!!!!!!

Lanke Banda Wednesday, 09 May 2012 05:37 AM

By Gad Sir

ranjan Wednesday, 09 May 2012 05:40 AM

hi

Yehiya Wednesday, 09 May 2012 05:50 AM

Kabba is very professional but politicized.

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Situation was under control-Cabraal

Comments - 24

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