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 maintains policy rates, current monetary policy appropriate
Tue, May 20, 2014, 09:20 am SL Time, ColomboPage News Desk, Sri Lanka.

May 20, 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.

Accordingly, the Standing Deposit Facility Rate (Repurchase Rate) would remain at 6.50 percent while the Standing Lending Facility Rate (Reverse repurchase Rate) remains at 8.50 percent, the Central Bank announced Tuesday.

Low inflation at 4.9 percent in April 2014 and favorable inflation outlook were the key factors in the Bank's decision to maintain the policy rates, the Central Bank said.

Inflation is projected to remain benign in the months ahead, supported by favorable expectations although weather related supply disruptions could cause some marginal variation in the behavior of certain food items, the Bank cautioned.

Sri Lanka's trade deficit contracted by nearly 12 percent for the first quarter 2014 boosted by high export trade volumes recorded in March 2014.

Export earnings in March surpassed US$ 1 billion recording a significant 28.6 percent growth compared to the same period in previous year.

The Bank expects the outlook for export earnings to remain positive as advanced economies recover in the months ahead.

As at end March 2014, gross official reserves were at US$ 8.1 billion.

Public corporations continued to settle their liabilities to the banking sector, with total reduction in credit to public corporations during the first three months of the year amounting to Rs. 35.1 billion.

Considering the developments, the Monetary Board has decided to keep the rates steady atc current levels.

The Bank expects commercial banks to pass the benefit of the eased monetary policy stance to borrowers without further delay.

ColomboPage - Recent 10 Stories
Japan donates a fully equipped Ambulance to Sri Lanka Air Force
-- [7 hours ago]
Indian nationals smuggling foreign currency and Wallapatta arrested in Sri Lanka
-- [7 hours ago]
Sri Lanka prepares to hold UN Vesak Celebrations for first time
-- [7 hours ago]
No bilateral agreements during Indian PM's visit to Sri Lanka, President clarifies
-- [8 hours ago]
Sri Lanka Bureau of Foreign Employment earns Rs. 1.2 billion in profits for the first time
-- [9 hours ago]
Minister suggests revising water supply charges for the economic stability of water board
-- [9 hours ago]
Navy grants compensation of Rs. one million for the family of officer died during training in India
-- [9 hours ago]
Body of 13-year-old girl dragged by crocodile found inside its belly
Korea EximBank signs aide memoire with ADB and Sri Lankan government to develop Colombo-Trincomalee Economic Corridor
Sri Lanka state doctors threaten to strike again between May 3 and 5 demanding to close SAITM

Copyright © 2000, 2014 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.