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Central Bank Holds Policy Rate Steady Amid Inflation Concerns

The monetary board cited balanced risks as its reason for pausing further rate cuts.

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The Central Bank’s monetary board met in Jaffna on Wednesday, weighing inflation data against calls from exporters for a more competitive rupee.

The figures come as Sri Lanka continues its post-crisis recovery, with exporters pressing for policy stability over the medium term.

We are seeing early signs of a genuine, broad-based recovery.

Central Bank Economist
  • Small business associations asked for extended repayment terms
  • The finance ministry will publish a full report next month
  • Foreign remittances remained steady compared to the previous quarter

The next policy review is scheduled within the quarter, with markets watching closely for further signals.

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