We Will Be Considering Further Relaxation of Policy, Says Sri Lanka Central Bank Governor

The video discusses the factors influencing the relaxation of monetary policy, including global economic conditions and domestic fiscal concerns. It highlights the impact of international easing on policy space and the challenges of managing fiscal slippage and outflows. The discussion also covers GDP growth projections, economic recovery post-terror attacks, and the effects of the trade war on Sri Lanka's economy. The video concludes with insights into tourism recovery and potential opportunities arising from global trade shifts.

What are some of the factors that supported the relaxation of the policy rate?

• Rising domestic interest rates

• Decrease in global economic growth

• Stable inflation outlook

• Increase in trade deficits

What potential risk is mentioned in relation to fiscal policy?

• Stable trade balance

• Decrease in inflation

• Fiscal slippage

• Increase in foreign investment

How has international monetary easing influenced policy decisions?

• It has limited policy space

• It has created more policy space

• It has decreased interest rates

• It has increased inflation

What is the revised GDP growth projection for the year?

• 2.5%

• 4.0%

• 3.1%

• 3.5%

How is the tourism sector recovering after recent setbacks?

• It has fully recovered to last year's figures

• It has surpassed last year's figures

• It is still below last year's figures but showing improvement

• It has not shown any signs of recovery

What impact has the trade war had on Sri Lanka's economy?

• It has decreased apparel exports

• It has created opportunities for apparel exporters

• It has stabilized the economy

• It has increased foreign investment

What is the expected impact of the trade war escalation?

• Positive impact on growth

• Increase in foreign investment

• No impact on growth

• Negative impact on growth