CBSL to continue current monetary policy

2019-07-12 at 16:09

The Central Bank of Sri Lanka releasing the monetary policy review says, given the current and expected developments in the domestic economy and the financial market, the Monetary Board was of the view that the continuation of the current monetary policy stance is appropriate.

Accordingly, the Standing Deposit Facility Rate and the Standing Lending Facility Rate of the Central Bank will remain at 7.50 percent and 8.50 percent, respectively.

The Central Bank said the decision of the Monetary Board is consistent with the aim of maintaining inflation in the desired 4-6 percent range while supporting economic growth to reach it potential over the medium term.

The Sri Lankan economy grew at a relatively healthy rate of 3.7 percent during the first quarter 2019, compared to 1.8 percent recorded in the fourth quarter.

The Central Bank said the ongoing recovery in the tourism sector as well as the performance of export provide some confidence of a speedy recovery, with the support of actions taken by the sectoral authorities, as well overall fiscal and monetary policies.