CBSL said the country's trade deficit is expected to continue to narrow as spending on imports falls. It said workers' remittances should continue to see healthy growth in 2021.
The benchmark stock index dropped 2.7% to 7,002.04, its lowest since Jan. 6. With Thursday's fourth straight of losses, the index is now well below a record high of 9,025 hit in late January, and is just up around 3% for the year.
The MSCI's ex-Japan Asian-Pacific shares lost 1.8% and other stock markets dipped after 10-year US Treasury yield, the benchmark for global borrowing costs, rose past 1.45% on Wednesday.
Reports the country will default on its debt were "politically and ideologically motivated", he said, adding the country was committed to honouring its foreign debt obligations.
"Inflation could briefly accelerate over the medium term," CBSL said on account of the improvement in demand on back of policy stimuli but said it broadly expects it to remain in the 4-6% target range.