Sri Lanka cenbank leaves rates pat to ensure sustained recovery

By Reuters10 days ago


By Swati Bhat

MUMBAI, April 8 (Reuters) - Sri Lanka's central bank left its key policy rates steady on Thursday and committed to keeping monetary policy accommodative to support a sustained economic recovery as the inflation environment remains benign.

The Central Bank of Sri Lanka (CBSL) kept the standing deposit facility rate and the standing lending facility rate at 4.50% and 5.50%, respectively. The statutory reserve ratio was also left unchanged at 2%.

“The Central Bank reiterates the necessity to maintain the low interest rate structure, amidst the significantly high excess liquidity in the domestic money market, thereby facilitating the take-off of domestic investment,“ the monetary board said in a statement.

CBSL said most market interest rates have declined to historic lows on the back of measures taken by the central bank and the government, but that there was some upward pressure seen on bond yields in recent times in contrast to expectations.

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