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
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
CA Sri Lanka offering CPFA qualification for senior public servants
-- [23 minutes ago]
UN scales up support to Sri Lankan government's peacebuilding and development agendas
President to instruct Provincial Councils on spending their allocations based on priority of development
Sri Lanka judiciary rules financial crime investigating unit is legal
High level ministerial meeting to counter drug trafficking in Colombo on 29 October
Sri Lanka Central Bank teams up with Inland Revenue Department to fight money laundering, terrorist financing
Sri Lanka government values the work of the United Nations in the country - Foreign Minister
Sri Lanka's Northern Province Chief Minister refuses to hoist LTTE flag at an event in London - report
Norwegian tall ship Sørlandet visits Sri Lanka's Port of Colombo
Cricket legends Kumar Sangakkara and Mahela Jayawardene join EU in Sri Lanka to raise awareness in violence against women

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.