The Central Bank of Sri Lanka kept its interest rates unchanged, saying its recent cuts were sufficient to stabilize the inflation rate in the range of 4% to 6% in the medium term.
The bank maintained its standing deposit facility rate and standing lending facility rate at 7% and 8%, respectively, after cutting the rates by 50 basis points in August.
The central bank expects a subdued economic growth in 2019, followed by a gradual recovery in the medium term, and a reversal to low levels of core inflation in January 2020. Sri Lanka posted GDP growth of 1.6% for the second quarter, down from the 3.7% registered in the first three months of 2019, data from the country's statistics agency showed.
