Sri Lanka central bank says fourth quarter reserve money goal to be met

21 Dec, 2008

Sri Lanka's central bank on Friday said its reserve money growth targets are under control and growth in the broad money supply had declined to a single digit level. "Growth in the broad money supply has decelerated to single digit levels, with growth declining to 9.8 percent by end October 2008, compared to 16.6 percent at end 2007."
The central bank also said the government was exploring ways of raising external finances from alternative sources. It kept policy rates unchanged for a 22nd month, repurchase rate at 10.5 percent and reverse repurchase rate at 12 percent - both at their highest level since 2002, after having dropped them as its main tool to curb inflation by controlling money supply.

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