The Central Bank of Sri Lanka (CBSL) said the Monetary Board was of the view that the continuation of the current monetary policy is appropriate, given current developments and the outlook for macroeconomic variables.

According to CBSL, the decision will contribute to a favourable growth outlook for the economy as it is consistent with stabilising inflation at mid-single digit levels in the medium term.

To this end, CBSL stated: “It is envisaged that the government’s continued commitment to the implementation of structural reforms will help the economy to attain its potential over the medium term amidst fiscal consolidation.”