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23.07.2025 09:58:55
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Sri Lanka Central Bank Holds Policy Rate
(RTTNews) - Sri Lanka's central bank maintained its interest rate on Wednesday amid intensifying trade tensions and recurring geopolitical conflicts. The Monetary Policy Board of the Central Bank of Sri Lanka decided to hold the overnight policy rate at 7.75 percent.
The bank had reduced the rate by 25 basis points in May.
The bank expects inflation to turn positive this quarter and steadily rise towards the 5 percent target. Core inflation is forecast to gradually accelerate in the coming months, reflecting the steady recovery in the economy's demand conditions.
Further, the board said the leading economic indicators suggest economic growth momentum will continue in the near term.
The board said it is prepared to take appropriate policy measures to ensure that inflation stabilizes around the target, while supporting the economy to reach its potential.
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