World Economy

Lanka Key Rates Unchanged

Lanka Key Rates UnchangedLanka Key Rates Unchanged

Sri Lanka’s central bank kept its key rates at record lows as expected for the second straight month in June, against a backdrop of low inflation and decent growth, the monetary policy statement released by the Central Bank of Sri Lanka showed on Monday, RTT News reported. The Monetary Board of the Central Bank of Sri Lanka maintained the Standing Lending Facility Rate as 7.50% and the Standing Deposit Facility Rate at 6%. Policy rates were last slashed by 50 basis points in April. The board noted that the Sri Lankan economy has expanded by 6.4% in the first quarter, with positive contributions from all three key sectors. The services and industry sectors grew by 7.5% and 6.5%, respectively, while the agriculture sector displayed strong signs of recovery. Looking ahead, the prospects of improved performance in advanced economies along with low inflation and low market interest rates are expected to benefit domestic economic activity. Inflation is projected to remain comfortably below 4% this year.