Sri Lanka Keeps Rates Unchanged

Sri Lanka’s central bank said it is keeping policy rates unchanged in December with inflation rising 4.1% during the year, economynext reported. Credit from commercial banks to private business had grown by 22% in October, slowing from 25.6% in October, with 79 billion rupees ($532.2 million) in new credit being given in the months. Borrowings by the state from commercial banks had increased ‘modestly’ in October the central bank said. Broad money growth has slowed to 17.8% in October from 18.4% in September. Rupee liquidity had become surplus by December and interest rates have stabilized, the central bank said. According to the provisional estimates of the Department of Census and Statistics, the Sri Lankan economy is estimated to have grown by 4.1% during the third quarter of 2016 compared to the growth of 5.6% in the corresponding period of the previous year. Services activities grew by 4.7%, while Industry activities grew notably by 6.8% during the third quarter of 2016.