Sri Lanka's central bank left its key interest rates unchanged on Thursday following an unexpected pick-up in retail inflation but maintained its accommodative stance, highlighting the risks from the coronavirus epidemic.

The Central Bank of Sri Lanka (CBSL) said it was ready to inject liquidity as necessary, after maintaining the standing deposit facility rate and the standing lending facility rate at 6.50% and 7.50%, respectively. The statutory reserve ratio was also left unchanged at 5%.

The CBSL has cut interest rates thrice over the last 10 months, starting with the first reduction in May after the Easter bomb attacks that triggered a slump in investments and tourism.

The coronavirus epidemic and its potential to become a pandemic pose significant risks to a global economic recovery and would thus impact Sri Lanka, it said.