Sri Lankan Central Bank Rates Left Steady

January 19, 2010

The Central Bank of Sri Lanka retained a 7.5% repo rate and a 9.75% reverse repo rate as was expected.  At the beginning of 2009, those boundaries stood respectively reduced from 10.5% and 12.0%.  CPI inflation fell sharply last year but recently has picked up.  Inflation averaged 22.6% in 2008 but just 3.4% last year; however, the increase between December 2008 and December 2009 was 4.8%.  Bank credit to the private sector has been diminishing until recently but turned upward in November.  The statement released today talks of benign inflationary pressure in 2010.  Growth is expected to be ample at around 6%.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.


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