The Central Bank of Sri Lanka held its Overnight Policy Rate at 8.75% following its latest monetary policy review.
The decision comes as headline inflation rose to 6.8% in June, driven primarily by surging global energy costs and domestic food prices following renewed Middle East tensions.
Despite the short-term price spike, the Central Bank emphasised that medium-term inflation expectations remain firmly anchored around its 5% target.
Policymakers expect previous rate hikes and policy measures to cool demand and stabilise prices over the coming months.
The decision comes as headline inflation rose to 6.8% in June, driven primarily by surging global energy costs and domestic food prices following renewed Middle East tensions.
Despite the short-term price spike, the Central Bank emphasised that medium-term inflation expectations remain firmly anchored around its 5% target.
Policymakers expect previous rate hikes and policy measures to cool demand and stabilise prices over the coming months.
