July 06, Colombo: Sri Lanka's Central Bank releasing the monetary policy review on Friday said based on the current developments and outlook for key macroeconomic variables, the Monetary Board of the Central Bank was of the view that the continuation of the current monetary stance is appropriate.
Accordingly, the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) remain at 7.25 percent and 8.50 percent, respectively, while the Statutory Reserve Ratio remains at 7.50 percent.
The Board's decision is consistent with stabilizing inflation at mid-single digit levels in the medium term, thereby contributing to a favorable growth outlook for the Sri Lankan economy, the Central Bank said.
Both national and Colombo inflation remained at low single digit levels, in spite of the transient acceleration mainly arising from the upward revisions to prices of domestic petroleum products and other administratively determined prices.
According to the provisional estimates released by the Department of Census and Statistics (DCS), the Sri Lankan economy grew by 3.2 per cent, year-on-year, in the first quarter of 2018, compared to the revised annual growth rate of 3.3 per cent in 2017.
"It is envisaged that the government's continued commitment to the implementation of structural reforms will help the economy to attain its potential over the medium term, amidst fiscal consolidation," the Central Bank said.
The gross official reserve position is estimated to have improved to around US dollars 9.2 billion by end June 2018, compared to US dollars 8.0 billion at end 2017.
So far during the year, the Sri Lankan rupee has depreciated against the US dollar by 3.6 percent.