CB keeps policy rates unchanged: Economy currently operating below potential
Sri Lanka will keep policy rates unchanged in February as the economy is stabilizing with improvements in trade figures, the islands central bank said.
“The decision of the Monetary Board is consistent with the objective of maintaining inflation at mid-single digit levels over the medium term and thereby facilitating a sustainable growth trajectory,’ it said in a statement.
The Monetary Board also noted that the economy is currently operating at a level below its potential.
“Nevertheless, as per the available indicators, the economy is likely to recover from the effects of adverse weather conditions in the past two years and benefit from the expected boost in external demand and foreign direct investment inflows,”
“Improvements in the trade front, including the execution of new...
