The Central Bank of Sri Lanka left its key rates unchanged, saying the country's economic performance was still below potential.
The bank maintained its standing deposit facility rate at 7.25%, the standing lending facility rate at 8.75%, and the statutory reserve ratio at 7.50%.
In a statement, the bank said the Sri Lankan economy is expected to recover from the impact of adverse weather conditions in the past two years and benefit from higher external demand and foreign direct investment inflows.
"Improvements in the trade front, including the execution of new trade agreements supported by increased private investment driven by structural reforms, are also likely to provide the necessary impetus for the economy to achieve its potential in the medium term," the bank said.
The bank also kept its rates unchanged to hold inflation at mid-single-digit levels over the medium term.
In January, consumer prices rose 5.8% from a year ago, slowing from a 7.1% increase in December 2017.