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RBI Samvad Conference: CBSL Chief shares price stability lessons

The Governor of the Central Bank of Sri Lanka (CBSL) Dr P Nandalal Weerasinghe emphasised the critical role of institutional credibility, strong monetary policy frameworks, and policy buffers in navigating increasingly frequent external shocks during an address at the Reserve Bank of India’s (RBI) Samvad Conference on Monday (19).

Participating in a panel discussion titled ‘Managing Uncertainties in Challenging Times’, the Governor drew upon Sri Lanka’s recent economic experience to outline how central banks can build resilience. The address underscored that while central monetary authorities cannot prevent global shocks from occurring, robust policy frameworks are essential to protecting broader stability.

According to the Governor, maintaining price stability and preserving long-term economic resilience requires timely, well-calibrated, and well-coordinated policy responses. The address highlighted that these responses must be supported by exchange rate flexibility, transparent communication, sound macroeconomic policies, well-anchored inflation expectations, and adequate policy buffers.