Jun 30, Colombo: For the fourth consecutive month Sri Lanka's inflation decreased to 4.8 percent in June from a 5.3 percent in May 2010, Central Bank's Department of Census and Statistics figures released today showed.

However, the , increased marginally to 3.9 percent in June from 3.6 percent in the previous month. Consumer's Price Index rose by 0.8 percent over previous month's, with the Index moving upward to 217.7 from 215.9 in May.

The Central Bank expects to continue its tight monetary policies to keep inflation below 10 percent while sustaining an economic recovery.

Central Bank has maintained low interest rates with the reverse repurchase rate currently at 9.75 percent and the repurchase rate at 7.5 percent to sustain the economic recovery, the government so desires.

Citing economic growth and stability, the International Monetary Fund (IMF) on Monday approved a US$ 407.8 million disbursement to Sri Lanka as the third tranche of a US $ 2.6 billion Stand-By-Agreement approved in July 2009.

Overall economic conditions in Sri Lanka are improving and the economy is likely to show strong growth this year, the international lender says.