CB keeps rates steady at multiyear lows as expected

Sri Lanka’s central bank kept policy rates steady at multiyear lows on Tuesday, as expected, and said it hopes for a rebound in private-sector credit growth from the second quarter after it slowed to 4.4 percent year-on-year in February from 5.2 percent a month earlier.

“The Sri Lanka economy is poised for stronger performance with the recovery observed in the external sector, sustained momentum in construction and manufacturing sectors and with monetary aggregates performing as expected, and inflation remaining low and stable,” the central bank said in a statement.

The repurchase rate and reverse repurchase rate were left at 6.50 percent and 8.00 percent, respectively. A Reuters poll of thirteen analysts had expected the central bank to keep the monetary policy rates unchanged, Reuters reports.