COLOMBO, July 22 -- Sri Lanka's Monetary Policy Board has kept the Overnight Policy Rate (OPR) unchanged at 8.75%, citing elevated inflation, stronger domestic demand and continued uncertainty in the global economy despite easing external pressures.

The decision was taken at the Board's meeting on Tuesday (21) following an assessment of domestic and international economic conditions, the Central Bank of Sri Lanka (CBSL) said in a statement.

It noted that renewed tensions in the Middle East had driven up global commodity prices, particularly crude oil, posing risks to global economic growth and creating potential spillover effects for Sri Lanka through higher import costs and other external channels.

Headline inflation accelerated to 6....