Sri Lanka hiked rates to keep in step with US, lower credit growth

ECONOMYNEXT – Sri Lanka hiked rates to keep in step with the US and slow down higher-than-expected credit growth, Central Bank Governor Indrajit Coomaraswamy said.

He said higher rates would keep the parity with the US and Sri Lanka, and take away incentives for foreign bondholders to sell, he said.

Countries with stable exchange rates including Dubai and Hong Kong always raise in step.

In the last quarter of 2016, the economy grew 5.5 percent.

Although credit growth slowed, it was higher than expected, he said. (Colombo/Mar24/2017)
 

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