CBSL Governor Nandalal Weerasinghe says Sri Lanka’s inflation rate could rise to 7% if higher fuel prices and current demand levels continue.

Speaking on a television programme, the Central Bank of Sri Lanka (CBSL) Governor said inflation is currently projected at around 5.4%–5.5%.

He said the prolonged Middle East conflict has contributed to rising fuel costs and inflationary pressure.

He also stated that legally earned funds can be remitted to Sri Lanka through the formal banking system, subject to anti-money laundering regulations.