Tuesday, April 12, 2011

Central Bank of Sri Lanka Raises Reserve Requirements 100bps

The Central Bank of Sri Lanka increased the Statutory Reserve Ratio applicable to all rupee deposit liabilities of commercial banks by 100 basis points to 8% from 7% previously, effective April 29. In reference to the move the Bank said "While the excess liquidity in the domestic money market remains a concern, left unchecked, it could further expand monetary aggregates, leading to higher inflation than originally envisaged,". The Sri Lankan economy grew 8% in 2010, while inflation was last reported as 8.6% in March (7.8% in February this year).

www.CentralBankNews.info

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