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Tuesday, April 16, 2013 - 6.41 GMT
Policy rates maintained, current monetary policy appropriate


Central Bank has decided to maintain current policy interest rates as its Monetary Board is of the view that the current monetary policy stance is appropriate.

Following its monthly Monetary Board meeting held Friday, the Central Bank said the Repurchase rate would remain at 7.50 percent while the Reverse Repurchase rate remains at 9.50 percent.

"Monetary policy measures taken so far indicate that expected results are being realized, providing reasonable stimulus for a higher economic growth," the Central Bank said in its monetary policy review released Tuesday.

The Sri Lankan economy grew at a robust rate of 6.4 percent in 2012 despite the drop in exports earnings amidst the global economic challenges and core inflation for March 2013, fell significantly to 6.8 percent, reflecting a continuing decline in food prices.

The inflation remained in single digit levels consecutively for the past 50 months.

The balance of payments (BOP), which turned around in 2012 recording a surplus of US dollars 151 million at end 2012, remains in surplus so far this year and is expected to improve further with increased foreign currency inflows, the Central Bank said.

The gross official reserves rose to US$ 6.9 billion absorbing US$ 560 million this year.






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Last modified: April 16, 2013.

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