INSUBCONTINENT EXCLUSIVE:
interest rates in line with prevailing policy rates.The Standing Lending Facility rate was held steady at 15.50% while the Standing Deposit
envisaged disinflation path, the central bank will be compelled to impose administrative measures to prevent any undue movements in market
remain unchanged as it waited to see effects of its earlier hikes to filter through to prices and the broader economy.The CBSL has raised
rates by a record 950 basis points this year to battle runaway inflation.The island nation has been grappling with low foreign exchange
reserves for most of the year and has struggled to pay for essential imports
Low import supply has triggered soaring inflation
The currency has depreciated sharply.CBSL expects the economy to shrink by 8.7% this year, one of the worst full-year slumps on
the statement.Sri Lanka, which defaulted on its foreign debt repayments in May, secured a preliminary IMF deal for a $2.9 billion bailout in
However, the country has to put its heavy debt on a sustainable path before disbursements can begin.Source: Reuters--Agencies
This article first appeared/also appeared in https://adaderana.lk
