Sri Lanka, May 27 -- The Central Bank of Sri Lanka (CBSL) yesterday announced a sharp increase in policy interest rates by 100 basis points (1 percent) in a move aimed at controlling inflation and stabilising the economy amid rising global uncertainties and external shocks.

CBSL Governor Dr. Nandalal Weerasinghe addressing a special media briefing held at the Central Bank in Colombo yesterday (26), said the decision was taken by the Monetary Policy Board at its meeting held on May 25 after carefully assessing prevailing domestic and global economic conditions and future economic prospects.

The Central Bank has decided to impose maximum credit limits on gold mortgages and vehicle loans. Explaining the reason for the decision, the Govern...