Sri Lanka holds rates, state credit easing; Central Bank

Wednesday, 24 July 2013 - 13:21


The Central Bank said Sri Lanka is holding its policy interest rates at 9 percent to give money to banks with credit to state starting to ease, which will help private borrowing.


Sri Lanka's private borrowings and investment have been crowded out and investments by heavy government borrowing from banks and chronic large losses in state enterprises.

Sri Lanka's has cut rates in 2013 amid fears of higher inflation and currency weakness and also cut a statutory reserve ratio in July, contributing to some exchange rate weakness and a one-off loss in foreign reserves because all released liquidity was not mopped up.