Dr Ajith Nivard Cabraal, Governor of Sri Lanka Central bank has been re-appointed to a second six-year term. This step has been described by analysts as a signal on the continuity in monetary policy that has been credited with bolstering the country's post-conflict economic resurgence.

Governor Cabraal played a lead role in negotiating Sri Lanka's $2.6 billion International Monetary Fund (IMF) loan, drumming up foreign investment with a series of roadshows and keeping a rein on inflation.

Cabraal's new term starts on July 1. An accountant turned politician, Cabraal was originally appointed in 2006 as the 17th governor after President Mahinda Rajapaksa was first elected.

Under Cabraal, inflation is down to single digits from a record of more than 28 percent in July 2008, and he has kept the rupee currency stable with a policy of intervening to stop wide swings, which have traditionally bedevilled Sri Lanka, a Reuter report stated.

Annual inflation has slowed to 5.3 percent in May and decelerated for a third straight month after hitting a one-year high in February. The central bank expects inflation to be subdued for the rest of the year, the report added.

Both the central bank and the government have forecast 2010 economic growth at more than 7 percent, up from an eight-year low of 3.5 percent last year.