No change in bank interest

Although there were prior conclusions that the demand for vehicles would decrease this year, Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, stated that approximately 150 crore (1.5 billion) US dollars are expected to be spent on vehicle imports. The Governor revealed details about this expenditure, which amounts to approximately 46,424 crore (464.24 billion) Sri Lankan rupees, at a special press conference held yesterday at the Central Bank headquarters.

He pointed out that following the relaxation of vehicle import restrictions last February, after about five years, 360,117 vehicles were imported into the country last year, and Sri Lanka spent approximately 200 crore (2 billion) US dollars (about 61,898 crore or 618.98 billion Sri Lankan rupees) for this. Although it was thought that demand would decrease this year due to the large imports last year, the Governor's view was that a significant amount of foreign exchange would have to be spent on vehicle imports even in the financial years 2026 and 2027.

Meanwhile, he emphasized that the impact of Cyclone 'Ditwa' is not expected to have a decisive effect on the overall economic growth rate this year. Accordingly, it was stated that the Central Bank has forecasted Sri Lanka to achieve an economic growth rate of between 4 and 5 percent this year.

Furthermore, the Central Bank Governor stated that inflation in the country is expected to reach the target level of 5 percent within the next few months. Elaborating further at this press conference held to decide on policy interest rates, he mentioned that the Monetary Board of the Central Bank has decided to maintain the overnight policy interest rate unchanged at 7.75 percent.