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Sri Lanka Hikes Rates by 100 Basis Points to Tame Prices

  • Rate hike to ward off adverse price expectations: central bank
  • Nation pledges strong fiscal policy, reforms to win IMF aid
Vehicles wait in line for fuel near Colombo, on July 1.

Vehicles wait in line for fuel near Colombo, on July 1.

Photographer: Akila Jayawardana/NurPhoto/Getty Images

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Sri Lanka’s central bank raised borrowing costs, with the governor warning that inflation may climb to 70% as the bankrupt nation faces dire shortages.