Tight monetary policy in Sri Lanka pays off

The Central Bank of Sri Lanka announced that rates will remained unchanged at 10.5% on 25 June. The central bank also published its regular review of monetary policy on 25 June, noting that improvements in the external and monetary sectors of the economy have continued during the current year.

The impact of the tight monetary policy stance pursued by the central bank since the end of 2004, and the resulting slow down in the growth of monetary aggregates "is evident in the declining trend in i

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