"With the supply side acting very favorably, the monetary expansion of 15 percent should generate a decent economic growth rate in the range of 7-7.5 percent," P.B. Jayasundera, told a Foreign Correspondent Association (FCA) Forum late on Tuesday.
The IMF projected growth at 6 percent, saying earlier this month that the economy is slowing more than the government expects, and facing risks from high inflation, lower tax revenue and slow structural reforms in state enterprises.
Jayasundera said inflation will stabilise around 8 percent thanks to improving food supply. He said the government hopes to stick to the budget deficit target of 5.8 percent.