Finance

Sri Lanka Central Bank Holds Rates Steady, Deflation Possible in Near Term

Sri Lanka’s central bank announced that it would maintain policy interest rates between 8.25% and 9.25%, citing the likelihood of deflation in the near term due to easing supply conditions and adjustments to administratively controlled prices. “The Board observed that inflation is likely to remain well below the 5% target over the next few quarters,

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Finance

Sri Lanka’s Loan Demand Rises in Q2 2024 Amid Lower Interest Rates and Exchange Rate Stability

Sri Lanka experienced a significant increase in loan demand across the retail, corporate, and small and medium enterprise (SME) sectors during the second quarter of 2024, according to a recent survey by the Central Bank of Sri Lanka. This uptick is attributed to lower interest rates and stable exchange rates, reflecting improved economic confidence and

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Economics

Sri Lanka’s 2024 BOP Surplus Lags Behind 2023 Amid Ongoing Economic Policies

Sri Lanka’s balance of payments (BOP) remains in surplus in 2024, but it trails slightly behind the figures from 2023, according to official data. By June 2024, the country recorded a BOP surplus of $1.761 billion, compared to $1.957 billion in the same period the previous year. The surplus, reflecting an improvement in net international

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Economics

Sri Lanka’s CPI Up 2.4% in July; 22-Month Inflation Rises 2.8%

Sri Lanka’s consumer prices in the capital Colombo increased by 2.4% in the 12 months to July 2024. However, the central bank’s deflationary policy, which began impacting the balance of payments in September 2022, has only resulted in a 2.8% rise over the past 22 months. In July, the Colombo Consumer Price Index (CPI) fell

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