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Thursday, 05 April 2012 - 19:35
Treasury warns of rise in interest rates
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A media report quoting Treasury Secretary P B Jayasundera said that Sri Lanka is reaching its foreign borrowing limit and interest rates may be raised further to curb credit and cure a balance of payment crisis

Jayasundera was quoted as saying by Reuters that Sri Lanka is reaching the limits on borrowing with the government itself has a $3 billion bond market.

He added that the only way liquidity can decrease is by slowing down loan demand and also by raising deposits and both cannot be done, unless you raise interest rates.

He also stated that authorities would watch April data and raise rates by another 50 basis points.

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