Sri Lanka, Jan. 29 -- The Monetary Policy Board of the Central Bank of Sri Lanka decided to maintain the Overnight Policy Rate (OPR) at 8.00% during its meeting on January 28, 2025. The decision was based on a careful assessment of macroeconomic conditions, aiming to ensure inflation stabilizes at 5% in the medium term while supporting economic growth.

Headline inflation remained negative for the fourth consecutive month in December 2024, mainly due to reductions in electricity tariffs and fuel prices. A further decline in inflation is expected in the coming months before it turns positive by mid-2025 and moves toward the 5% target.

Economic activity continued its recovery, with GDP growing 5.5% in the third quarter of 2024, following a...