Sri Lanka holds rates to manage inflation, foster economic stability

Sri Lanka’s central bank kept interest rates unchanged on Tuesday, surprising some analysts who expected a rate cut. The move aims to curb inflation pressures and foster economic stability following the country’s financial crisis. Annual inflation cooled to 1.5% in April, but the bank cautioned about upside risks. It urged lenders to pass on lower rates to borrowers to boost private sector credit and support the economy’s projected 3% growth in 2024. Photo: Reuters/File