Sri Lanka economy to grow over 8.5-pct in 2012: Central Bank

“Inflation is targeted to maintain at mid-single digit levels in 2012,” the Central Bank said.

“Money supply would be maintained at a level compatible with the expected growth in the nominal GDP in 2012.”

International commodity prices may rise next year amid uncertainty but domestic policy would be oriented to counter such developments.

“The sluggish recovery in many advanced economies with renewed uncertainties, and its impact on global demand is likely to contain increases in commodity prices globally, including the price of petroleum,” the Central Bank said.

“These together with continued fiscal consolidation and timely monetary policy action to mitigate any demand driven inflationary pressures would ensure achieving a low and stable inflation in 2012.

The Central Bank said the balance of payments is expected to show a ‘moderate surplus’ in 2012.

Some analysts have raised concerns about developments in the balance of payments in the latter half of 2011.

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