Sri Lanka, Oct. 27 -- Official data indicate that interest rates in Sri Lanka's money market have risen, driven by an increase in overnight transaction volume and a decline in surplus liquidity.

However, this adjustment is being weakly constrained by the Central Bank's "single policy rate."

The maximum and average Call Rate has increased to 7.90% from 7.86% last month.

The highest rate in the Repo market, which reflects broader conditions, rose to 7.95% from 7.91% last month.

The maximum and average Repo rate also increased to 7.92% from 7.88%.

Amid robust credit growth in recent months, the overnight transaction volume has increased to the Rs. 50-60 billion range, up from the Rs. 30-40 billion range observed in September.

Call tran...