COLOMBO, June 29 (Reuters) - Sri Lanka’s central bank kept key policy rates steady at record lows on Monday, as expected, and said prospects of improved performance in advanced economies along with low inflation and low market interest rates would benefit local economic activity.
It left the standing deposit facility rate (SDFR) and the standing lending facility rate (SLFR) unchanged at 6.00 percent and 7.50 percent, respectively. The commercial banks’ statutory reserve ratio was unchanged at 6.00 percent.
A Reuters poll had expected the rates to be left unchanged.
The central bank in April surprised markets with a 50 basis point cut to boost economic growth. Until April, rates were steady for 14 months.
“Inflation is projected to remain comfortably below 4.0 per cent during the remainder of the year,” it said in its monetary policy statement.
“Going forward, the prospects of improved performance in advanced economies along with low inflation and low market interest rates are expected to benefit domestic economic activity.”
Private sector credit grew 15.2 percent year-on-year in April compared to 13.9 percent rise in March. (Reporting by Shihar Aneez and Ranga Sirilal; Editing by Kim COohill)