SL economic growth seen rebounding at 5 to 5.5 % this year

objectives of maintaining economic stability and financial system stability.

The government will implement the necessary policy reforms to uplift the economy from the prevailing low growth trajectory to reach its potential level, he added.

Presenting the CB Roadmap, Dr. Coomaraswamy expressed the belief that sharing the policy direction would make policies for the medium term more predictable and transparent, and would help in shaping the plans and operational modalities in the future.

Ongoing policy reforms of the government focus on boosting exports as well as attracting FDI, he said adding that the Board of Investment (BOI) has estimated FDI to have reached $1.5 billion in 2017, which will be a key milestone and could possibly be a turning point in FDI inflows.

The commencement of the Hambantota Industrial Zone and the continuation of the Colombo Port City project will bring significant FDI flows from 2018 onwards. Annual FDI flows of $2-3 billion are expected in the coming years, he disclosed.

The CB’s Financial Intelligence Unit is taking several measures to improve Sri Lanka’s global ranking in the implementation of Anti-Money Laundering and Countering the Financing of Terrorism regulations.

The CB expects to strengthen its institutional frameworks by enhancing the monetary policy framework; strengthening the financial sector oversight; modernising payment and settlements; and, upgrading public debt management.

The Monetary Law Act (MLA) is to be amended to enhance the focus of the mandate as well as CB autonomy, governance, transparency and accountability.

Further, the government expects to strengthen fiscal consolidation by revising the Fiscal Management ( Responsibility) Act to include binding fiscal targets, Dr. Coomaraswamy said adding that this would institutionalise its commitment to fiscal discipline, which is essential given the country’s external debt dynamics and exposure to rating agencies and international capital markets.