Sri Lanka recorded a 6.4 percent Gross Domestic Product (GDP) growth rate in the second quarter of 2012.
The GDP growth rate provides an aggregated measure of changes in value of the goods and services produced by an economy.
Growth of imports has decelerated considerably since April, outpacing the decline in export growth, resulting in a continued improvement in the balance of trade, such improvement, together with sustained inflows on account of workers’ remittances and enhanced tourist earnings have helped narrow the deficit in the current account balance, the Central Bank said.
Further, the growing positive investor sentiment has resulted in cumulative net inflows of US dollars 229 million to the Colombo Stock Exchange, up to mid-September 2012, while proceeds of the fifth international sovereign bond issued in July and foreign investments in government securities amounting to US dollars 1,725 million in the same period have helped to ease pressure in the external sector, raising gross official reserves above US dollars 7 billion by end July, the Bank further said.
The Central bank has decided to maintain the policy rates unchanged at their current levels. As such, the Repurchase rate would remain at 7.75 per cent while the Reverse Repurchase rate would remain at 9.75 per cent.