The Central of Sri Lanka decided today to cut the repurchase rate by 50 basis points to reach 7.50% from 8.00%, while it was forecasted to be kept at the same level. The bank also decided to lower the reverse repo rate by 75 basis points to reach 9.75% from 10.50%.

The bank's decision aims at spurring credit demand and supporting economic recovery after 26 years of civil war, in addition to keeping inflation below 10%, worth mentioning that consumer prices in the capital Colombo inclined 1.4% in October from a year earlier the fastest pace in five months.