Lankapage Logo Recent Top Stories
Go Home Home Serving the Sri Lankan community globally since 2000
go to

Leading News from Sri Lanka::

* Sri Lanka Central Bank maintains interest rates, current monetary policy appropriate
Tue, Feb 12, 2013, 10:19 am SL Time, ColomboPage News Desk, Sri Lanka.

Feb 12, Colombo: Sri Lanka's 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 Monday, the Central Bank said the Repurchase rate would remain at 7.50 percent while the Reverse Repurchase rate remains at 9.50 percent.

Current tight policy measures adopted early 2012 to moderate private sector credit expansion proved effective, the Central Bank said in its Monetary Policy Review for February 2013.

The tight policy measures resulted in a marked decline in non-oil imports, narrowing the deficit in the trade account in 2012.

Private sector credit growth declined to 17.6 percent by end 2012 from 34.5 percent at end 2011 although the government and public corporations borrowing from banks remained at 21.7 percent at end 2012.

Since the objectives of the tight measures have been realized the Central Bank has relaxed the policies somewhat from December 2012 to boost the economic growth.

The Bank expects the reduction in policy interest rates and the expiration of the credit ceiling in December 2012 to support the economy to move towards its full potential in 2013.

While inflation remained at single digit levels over the past four years, it rose to 9.8 percent, year-on-year, in January 2013. The Central Bank attributed the rise in inflation to the adverse weather conditions affecting vegetable prices.

The Bank expects the inflation to remain the same for February and decline afterwards.

ColomboPage - Recent 10 Stories
Sri Lankan President meets Canadian, Australian leaders at CHOGM
-- [9 hours ago]
Murdered businessman's father retracts statement made in support of convicted DIG
Higher Education Minister ready to discuss undergraduates' grievances
Human Rights Commission of Sri Lanka calls for immediate release of detainees held for a long time
Sri Lankan President to leave for Paris to attend Climate Change summit
UK steps up reconciliation and human rights support for Sri Lanka
Indian Army Chief to discuss upgrading Sri Lanka's defense equipment during visit
CID records statement from Minister Rajitha Senaratne on Avant Garde Chairman's claims
Sri Lanka's power authority earns over Rs. 38 million through raids on power pirates
Sri Lanka to introduce a new Education Act in January

Copyright © 2000, 2012 by (LLC) :
The news and other contents on ColomboPage are copyrighted property of, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.