Sri Lanka's central bank maintains interest rates at current level

COLOMBO, Nov. 24 (Xinhua) -- The Central Bank of Sri Lanka said Thursday it has decided to maintain its Standing Deposit Facility Rate and Standing Lending Facility Rate at the current level of 14.50 percent and 15.50 percent, respectively.

Its Monetary Board made the decision after considering recent and expected developments related to both the domestic and global economy as well as macroeconomic projections, the bank said in a press release.

The board noted that sticking to a tight monetary policy stance is necessary to contain any demand-driven inflationary pressures on the economy.

This will help the Southeast Asian country lower inflation towards the targeted range of 4-6 percent over the medium term, according to the bank.

Supported by favorable supply-side developments and tight monetary policy measures, inflation dipped in October after passing the peak in September, the bank said.

Inflation will continue to decline in the coming months largely due to a drop in demand, expected improvements in domestic supply, and normalization of global commodity prices, according to the press release.