With the inflow of US dollars 500 million from the debut international sovereign bond issue, both interest rates and exchange rates have now stabilised, said a press release issued by the Central Bank today (20). 

The Central Bank will also take necessary measures to maintain liquidity at a desirable level since demand pressures on the economy may occur due to excess liquidity. 

The release also said that the economy, which grew by 6.2 per cent during the first half of the year, is expected to yield an annual growth of around 6.7 per cent for the year. 

"Inflation, as measured by the point to point change in the Colombo Consumers’ Price Index (CCPI) which increased by 17.3 per cent in September, surged to 19.6 per cent led by the high international commodity prices including petroleum prices. However, inflation is expected to moderate when the one-off impact of such increases are  diminished, supported by domestic supply improvements as well as the continuous containment of demand pressures in the economy through the tight monetary policy stance adopted by the Central Bank," continued the release.

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Last Updated Date: November 20, 2007 - 4.15 GMT