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Sri Lanka policy rates steady; inflation, credit growth benign

Mar 21, 2014 (LBO) - Sri Lanka is holding a policy rate corridor at 6.


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5 to 8.0 percent, the Central Bank said amid benign credit growth and inflation.
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In 2011 a drought which reduced hydro power generated was accommodated by the banking credit which eventually saw the rupee falling to 130 from 100 to the US dollar and a surge in inflation.

The rate setting 'monetary board' expected credit to private sector to "rebound from the second quarter of the year, supported by declining market lending rates, sufficient liquidity levels and increased demand for exports from the advanced economies."

The state statistics office said Sri Lanka's economy has grown 8.2 percent in the last quarter of 2013.


Update II Economic Trends Sri Lanka policy rates steady in March; credit growth, inflation benign Mar 21, 2014 (LBO) - Sri Lanka is holding a policy rate corridor at 6.5 to 8.0 percent, the Central Bank said amid benign credit growth and inflation. Credit to government had expanded by 68.
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3 billion rupees in January 2014 but the proceeds of a sovereign bond sold in January is expected to have reduced credit to the state in February.

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