To boost Sri Lanka's economy, which is still adjusting to higher price levels after experiencing nearly 70% inflation 18 months ago, maintaining a low interest rate is crucial. Historically, the average real return has been around 3.5% with an inflation rate of 4% to 6%. Currently, the real return is approximately 7.00%.
To accelerate economic growth beyond the typical pace, it is essential for Sri Lanka to sustain a lower interest rate structure for an extended period. This will help stabilize the economy, promote investment, and support recovery efforts.