Sri Lanka recorded the highest money printing surge during the short tenure of the outgoing CBSL Governor

Sri Lanka recorded the highest money printing surge during the short tenure of the Central Bank of Sri Lanka (CBSL) former Governor, W.D Lakshman, who retired on Tuesday.

During his 22-month tenure, the CBSL went on to print a record Rs.1.21 trillion, by utilizing several methods including the unconventional quantitative easing method.

The country’s money supply as a percentage of the GDP last year also surpassed the 50 percent mark.

As inflation continues to rise while moving beyond the upper bound of the targeted range of 4-6 percent, the CBSL recently tightened the policy rates.

The low interest rates coupled with rising inflation also turned the real saving rates of banks negative.