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Tuesday, December 15, 2009 - 5.34 GMT |
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SL Current
Account to record a surplus in 32 years - CB |
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For the
first
time
since
1977 Sri
Lanka's
Current
Account
balance
will be
a
surplus
for the
year
2009,
the
Central
Bank
said
yesterday.
Issuing
its
monetary
policy
review,
the
Central
Bank
said the
trade
deficit
narrowed
significantly
during
the
first
nine
months
of 2009
due to
the
higher
reduction
in
expenditure
on
imports
compared
to the
decline
in
earnings
from
exports.
The
overall
deficits
in the
trade
and
income
accounts
were
offset
by
higher
inflows
into the
current
transfers
and
services
accounts,
resulting
in a
surplus
of US
dollars
393
million
in the
current
account
for the
first
nine
months
of 2009,
the Bank
reported.
The
Central
Bank
expects
this
performance
to
continue
through
the
fourth
quarter
of the
year.
According
to the
country's
top
financial
institute,
inflation
remains
to be
low as
the
annual
average
inflation
was
around 4
percent
by end
November
2009.
The Bank
expressed
optimism
that as
the
development
of the
Northern
and
Eastern
provinces
continues
in the
future
resulting
in
enhanced
supply
of goods
and
services
in the
country,
the
positive
domestic
economy
is
likely
to have
a
favorable
impact
on
inflation.
In light
of this
favorable
outlook,
the
Monetary
Board of
the
Central
Bank has
decided
to keep
its
policy
interest
rates
unchanged.
Accordingly,
the
Repurchase
rate and
the
Reverse
Repurchase
rate
would
remain
at 7.50
percent
and 9.75
percent,
respectively,
the Bank
reported.
The
Central
Banks is
to
present
its
monetary
policies
for 2010
"The
Road
Map:
Monetary
and
Financial
Sector
Policies
for 2010
and
beyond"
on 4
January
2010.
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