Sri Lanka’s Central Bank Governor Says Policy on Looser Side

Sri Lanka’s monetary policy has been “veering toward the looser side,” new central bank Governor Arjuna Mahendran said on Tuesday as he left interest rates unchanged amid inflation that’s near a five-year low.

Subdued demand pressure in the economy, lower fuel costs this year and the new government’s pledge to cut prices of key commodities will probably ease inflation further, he said in a statement. President Maithripala Sirisena ended the decade-long rule of his predecessor in a Jan. 8 election.