Sri Lanka, Oct. 12 -- Central Bank of Sri Lanka (CBSL) research found that inflation above 7% negatively affects economic growth while showing no clear growth advantage from inflation substantially below 5%, officials told a panel discussion on 9 October.Read Travel Guides

The findings formed part of the Bank's first scheduled review of its inflation target under the Central Bank Act of 2023. An agreement signed on October 1, retained a 5% target for another three years, measured by year-on-year headline inflation in the Colombo Consumer Price Index. CBSL's Economic Research Department Senior Economist and Head of the Modelling and Forecasting Division Dr V.S. Jayawickrema said threshold regression analysis found inflation above 7% adver...