Sri Lanka holds key rate to assist economic recovery

Sri Lanka’s Central Bank left its key policy rates unchanged on Wednesday to help the island’s continued economic recovery from last year’s tsunami. Sri Lanka’s Central Bank left its key policy rates unchanged on Wednesday to help the island’s continued economic recovery from last year’s tsunami. The repurchase rate at which it drains money from the banking system at 8.25 percent, the reverse repurchase rate was left at 9.75 percent the bank said in a statement posted on its website.

Policy rates were last raised by 50 basis points in June

Sri Lanka’s Central Bank has raised its benchmark interest rate twice this year to help damp inflation that has been accelerating due to higher global oil prices.

-LBO Newsdesk: LBOEmail@vanguardlk.com