Deputy Minister of Transport, Dr. Prasanna Gunasena claims that money printing will not lead to an increase in inflation in the country.
He also emphasized that the incumbent government has taken effective measures to stabilize the economy and control inflation.
Dr. Gunasena made these remarks while addressing media following the re-launch of buses imported in 2014, which had been out of service and were reintroduced with newly installed engines.
The Deputy Minister stated, “Currency notes printing is carried out according to the economic needs of the country. It happens every year. We must look at the overall economic indicators. Compared to the last six months, we have reduced the income–expenditure gap by more than 33%. In the first half of last year, state revenue stood at Rs. 1.8 trillion, whereas this year it has increased to Rs. 2.3 trillion—an increase of 24.7%. Meanwhile, expenditure has been reduced. Therefore, the economy is stable, and there is no need for doubt.”
When asked whether money printing would inevitably lead to inflation, the Deputy Minister responded:
“If that were the case, prices should already have risen. But they have not. Prices have stabilized, and inflation has actually decreased. The stock market has even reached 20,000 points for the first time in history. You cannot take individual figures and analyze them in isolation. When considered as a whole, the economy remains stable.”
