Sri Lanka, July 23 -- The Monetary Policy Board, at its meeting held yesterday (22), decided to maintain the Overnight Policy Rate (OPR) at the current level of 8.75%. The Board arrived at this decision after carefully considering the evolving conditions and outlook on the domestic and global fronts.
Renewed tensions in the Middle East have resulted in a surge in global commodity prices, particularly petroleum. These developments are likely to dampen global economic prospects with potential spillovers to the domestic economy through multiple channels.
Headline inflation accelerated to 6.8% (y-o-y) in June 2026, mainly due to higher domestic energy and food prices. Headline inflation is expected to remain above the target of 5% in the near...