Sri Lanka holds rates amid persistent deflation
Central bank expects price falls to intensify owing to cuts in electricity tariffs
The Central Bank of Sri Lanka (CBSL) held its policy rate at 8% on January 28 as inflation in the country remained in negative territory.
The CBSL said its decision would support its goal of achieving 5% inflation over the medium term and bolster the economy.
Headline inflation was -1.7% in December. This was up from -2.1% in November, and marked the fourth consecutive month of negative readings.
The central bank said it expected deflation to deepen further over the coming months because the
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