Sri Lanka, March 26 -- The Monetary Policy Board decided to keep the Overnight Policy Rate (OPR) at 8.00% at its meeting held yesterday. The Board arrived at this decision after carefully considering the developments both domestically and globally. The Board remains confident that the prevailing monetary policy stance will ensure that inflation will move towards the target of 5% while supporting the growth of the domestic economy.
Inflation remains negative at present mainly due to repeated reductions in electricity tariffs and fuel prices. Deflationary conditions are expected to gradually ease from March 2025, with inflation projected to turn positive by mid-2025. Projections based on the currently available data suggest that inflation wo...