Central Bank of Sri Lanka Holds Repo Rate at 7.00%

The Central Bank of Sri Lanka kept the repurchase rate unchanged at 7.00%, and left the reverse repurchase rate at 8.50%, and the reserve ratio at 8%.  The Bank said: "The Monetary Board...decided to maintain policy interest rates of the central bank at their current levels,".  On inflation the bank noted: "With the continuous supply of vegetables and other field crops after the floods, domestic food prices have started to decline, thereby easing pressure on inflation."

The Central Bank of Sri Lanka also held the monetary policy rates unchanged in May this year.  Sri Lanka's Colombo Consumer's Price Index (CCPI) rose at an annual pace of 8.8% in May, after rising 9.8% in April 2011, and up from 8.6% in March this year.

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