Sri Lanka, Dec. 1 -- There is scope and justification for a fiscal stimulus package with room for some infusion in aggregate demand to spur economic growth, Central Bank (CB) Governor Dr. Indrajit Coomaraswamy told the media on the monetary policy stance of the bank last week.
"There is some scope for infusion of aggregate demand which justifies a fresh fiscal stimulus package which was launched last week by the government aimed at stimulating economic growth," the Governor said.
However, he noted that the fiscal stimulus package should be structured in such a way that it does not lead to an overheating of the economy and undermine the debt dynamics of the country. "There will be policy statement from the government on the rationale of th...