Sri Lanka Holds Rates to Slow Price Gains as Growth Sputters

Thursday, 17 January 2013 - 13:00



Sri Lanka left interest rates unchanged to damp price gains and bolster economic growth.

The Central Bank of Sri Lanka kept its reverse repurchase rate at 9.5 percent and the repurchase rate at 7.5 percent.

Governor Ajith Nivard Cabraal said that Sri Lanka’s central bank will strive to contain price pressures while bolstering economic growth this year.

Sri Lanka’s inflation rate of about 9 percent is among the highest in a basket of 17 Asia-Pacific economies tracked by Bloomberg, as a drought hurt farm output and officials let the rupee weaken in 2012 to curb import demand and pare the trade deficit.