Sri Lanka’s interest rates are at an appropriate level and the central bank probably will keep borrowing costs steady for the next three to six months if current conditions persist, Central Bank Governor Ajith Nivard Cabraal said.
“There may be some other adjustments that we may need to make in the economy as we move on, but from the rates point of view, it seems appropriate in the current circumstances,” the Governor said in an interview with Bloomberg. “As it is now, there doesn’t seem to be a need for any change, but if we do see any changes, we will be quick to react.”
“The monetary sector looks stable,” Cabraal said. “Growth momentum has been back to normal. The exchange rate has been stable. All those conditions give us the confidence to say that the policy measures that we have taken in the past have been working and are working.”
Inflation has been in check and the outlook for price gains is benign, he further said. Consumer prices rose 4.7 percent in December from a year earlier, the slowest pace since February 2012.