Sri Lanka central bank keeps policy rates unchanged

COLOMBO: Sri Lanka's central bank on Wednesday kept policy rates unchanged for a 10th straight month as expected, saying inflation will slow further by the end of this year on improved domestic supply.

"The Monetary Board is of the view that a change to the existing monetary policy stance is not warranted. Hence, the Monetary Board decided to maintain the policy interest rates," the central bank said in its monthly policy review statement.

The repurchase rate was left at 7.00 percent, the lowest in more than six years, and the reverse repurchase rate at 8.50 percent, in line with the forecasts in a Reuters poll. The bank also left the Statutory Reserve Ratio for commercial banks unchanged at 8 percent as expected.