CB clarifies ..........

The Central Bank of Sri Lanka has made a clarification on a working paper published by officer of the International Monetary Fund Mrs. Nombulelo Duma, on Sri Lanka’s inflation. The Central Bank says several news media and certain politicians have made comments using the paper as a report of the IMF.
On the first page of the working paper itself it has been stated that the views expressed in the paper should not be construed as those of the IMF. It states that the research is still in progress and that the paper has been published to elicit comments and generate debate on the issues. On receipt of the draft working paper prior to its publication economists at the Economic Research Department of the Central Bank studied the data and the research methods used and found serious technical deficiencies.
The Central Bank says the model could explain only 25 percent of the movements in the inflation. Based on its findings the Central Bank forwarded comments on the paper highlighting its weaknesses but the author failed to understand the technical comments and published the substandard paper with its obvious imperfections.
The Central Bank makes this clarification since the highly erroneous conclusions of the study have been widely quoted in the media and by politicians.