Sri Lanka Central Bank Sees Monetary Policy Space to Face Shocks

Sri Lanka’s central bank Governor Nandalal Weerasinghe said there is monetary policy space to boost the island nation’s economy as US President Donald Trump’s sweeping tariffs take hold.

There is room to ease policy further “if economy needed that support,” Weerasinghe said at an investor forum in Singapore on Tuesday, without elaborating by how much the central bank could lower its benchmark rate. “I think we have good space for us to use going forward, depending on the outcome.”

“Without needing that support, pushing it through can create bubbles or burst cycles,” he added.

The Central Bank of ...