Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka Central Bank maintains interest rates, current monetary policy appropriate
Thu, Jan 17, 2013, 09:43 am SL Time, ColomboPage News Desk, Sri Lanka.

Jan 17, 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 Wednesday, 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 earlier last year to moderate private sector credit expansion continued to prove effective. However, credit obtained by public corporations, continued to grow, exerting some pressure on broad money growth, the Bank noted.

The monetary authority said private sector credit growth declined 20.7 percent by November 2012 from a peak of 35.2 percent in March 2012.

Cumulative trade deficit for the first eleven months of 2012 contracted by 2.1 percent compared to same period in 2011 increasing the gross official reserves.

For 2013, the Central Bank, expecting an improved trade balance, increased earnings from service exports, higher workers' remittances, and increased inflows to the government and capital markets from foreign direct investments, targets a higher Balance of Payment (BOP) surplus.

According to the Bank, due to the significant foreign inflows, the rupee has appreciated by 5.3 percent against the US dollar during the second half of 2012 and further appreciated by 0.6 percent by January 15.

Inflation eased in December 2012 to 9.2 percent and the Bank expects it to moderate from March 2013 and reach mid-single digit levels.

The Central Bank would monitor the credit disbursements by banks to private sector to keep the credit growth at around 18.5 percent in 2013.

Based on those developments in the finances, the monetary board has decided to maintain policy interest rates.



ColomboPage - Recent 10 Stories
Sri Lanka's migrant workers' organization pledges support to opposition candidate
-- [6 hours ago]
Sri Lanka ruling party supporters attack UNP rally in Haputale
-- [7 hours ago]
Landslide warning issued for 4 districts in Sri Lanka
-- [8 hours ago]
Sri Lankan President says common opposition candidate copied his budget proposals
-- [8 hours ago]
Two Russian naval ships arrive at Sri Lanka port
-- [9 hours ago]
Heavy rains in Sri Lanka cause havoc with floods
-- [9 hours ago]
India to export two warships to Sri Lanka
Sri Lanka Election Commissioner asks employers to grant leave for workers to vote
International Gem, Mineral & Jewellery trade show opens in Sri Lanka
Sri Lanka Police to investigate ruling party minister taking suspects of arson attack away from police custody

Copyright © 2000, 2012 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, 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 LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.