Sri Lanka’s Central Bank stays pat on interest rates

Mar. 15 (LBO) – Sri Lanka’s Central Bank Wednesday left its policy rates at current levels for the third straight months, as it expects the 25-basis point hike last December to put the brakes on money supply growth. In a statement, the bank said it left its overnight repurchase rate at 8.75 percent and the reverse repurchase rate at 10.25 percent.

The repurchase rate is the return on cash deposited by commercial banks with the Central Bank and the reverse repurchase rate is the cost of borrowing from the Central Bank.

“Having reviewed the recent economic developments and prospects, the Monetary Board has decided to maintain the policy interest rates of the Central Bank at their current levels and to continue with the conduct of open market operations to decelerate the monetary expansion to the desired path,” the statement said.

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