Monetary policy could still be considered accomodative: Central Bank

Nov 02, 2016 (LBO) – Sri Lanka’s Central Bank said on Tuesday that despite a tightening in interest rates this year, that monetary policy could still be considered accomodative.

Growth in credit to the private sector could slow to around 20 percent by the end of the year, from the 27.3 percent in August, Assistant Governor K.M. Siriwardana said.

Ceylon Petroleum Corporation too has repaid around 65 to 70 billion rupees to the domestic banking sector, due to profits arising from low oil prices.

Inflation would hover in the mid single digits by the end of the year, he added.