Central Bank of Sri Lanka

January 11, 2012

The Sri Lankan repo rate of 7.0%, which was last reduced a year ago, has been retained for another month.  That country’s Monetary Board implemented rate reductions from a mid-2009 high of 8.5% totaling 100 basis points in 2009, 25 bps in 2010 and 25 bps in 2011.  A statement from the central bank today anticipates about 8% economic growth in 2012.  Inflation is running near 7%, with a core rate close to 5%.  A deterrent against easing policy as a preemptive step against global risks is the above-30% expansion of credit and near-20% growth of broad money.  The next policy meeting is scheduled for February 9.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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