If Sri Lanka gets the IMF facility soon as expected and if inflation is reasonably controlled the current high interest rates may come down and settle around 20%, it has been pointed out.
Some senior economists expressed the hope that though electricity prices are increased, as it is only a one off thing and not continuous, it will not have a significant bearing on inflation.
However, they said that in a scenario where the country is facing a severe economic crisis and it is not possible for the interest rates to come down drastically.
Meanwhile President Ranil Wickremesinghe recently said reducing bank interest rates in relation to the gradual decline in inflation is currently under consideration.
He also expressed hope that the country will receive the USD 2.9 billion under the International Monetary Fund’s extended fund facility (EFF) program by March.
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