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Sri Lanka's central bank left its key interest rate unchanged on Tuesday. The Central Bank of Sri Lanka retained its repurchase rate at a five year low of 7.5% and reverse repurchase rate at 9.75%.
The Monetary Board of the central bank decided to maintain its current monetary policy stance to facilitate the recovery in domestic economic activity. The Monetary Board said it will continue to monitor economic developments and prospects, with a view to reviewing its policy stance.
The central bank noted that inflation as measured by the Colombo Consumers' Price Index rose to 6.5% in January from 4.8% at the end of 2009. The gradual increase in annual inflation mainly reflects the dissipation of the base effect as well the recovery in commodity prices globally.
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