CB to maintain interest rates

The Central Bank of Sri Lanka (CBSL) has decided to maintain the interest rates at their existing levels.

In its Monetary Policy Review for this month (October) CBSL said that the current levels of policy interest rates do not require any adjustment at present since the policy measures adopted so far are still supportive of the desired outcome of gradual easing of the credit conditions in the country.

It also said worldwide inflation is expected to pick up moderately in the ensuing months with the base effects of last years high consumer prices driven by the commodity price bubble wearing out, as well as firming demand alongside the nascent recovery in global markets. Nevertheless, inflation in Sri Lanka is expected to be at subdued levels in the approaching months, with current inflation remaining at around 1 per cent during the four months up to September 2009.