Governor of the Central Bank of Sri Lanka (CBSL) Nandalal Weerasinghe speaks at a press conference in Colombo, Sri Lanka, March 26, 2025. The Sri Lankan central bank decided to keep the overnight policy rate (OPR) at 8.00 percent, according to a statement from it on Wednesday. (Photo by Gayan Sameera/Xinhua)
COLOMBO, March 26 (Xinhua) -- The Sri Lankan central bank decided to keep the overnight policy rate (OPR) at 8.00 percent, according to a statement from it on Wednesday.
The central bank's monetary policy board arrived at this decision after carefully considering the developments both domestically and globally, the statement said.
The board remains confident that the prevailing monetary policy stance will ensure that inflation will move towards the target of 5 percent while supporting the growth of the domestic economy, the central bank said.
According to the central bank, inflation remains negative at present, mainly due to repeated reductions in electricity tariffs and fuel prices.
It said deflationary conditions are expected to gradually ease from March 2025, with inflation projected to turn positive by mid-2025.
The latest annual estimates revealed that the domestic economy recorded a strong recovery in 2024 after two years of contractions, said the central bank, adding that recent developments in the economy and leading indicators point towards a continuation of this momentum. ■
