Sri Lanka Leaves Benchmark Rate Unchanged as US Tariffs Loom (1)

Sri Lanka’s central bank left its benchmark rate unchanged as policymakers gauge the progress of trade negotiations with the US before delivering additional stimulus.

The Central Bank of Sri Lanka kept the overnight policy rate at 7.75% on Wednesday. Seven of 10 economists surveyed by Bloomberg expected the single policy rate to be left unchanged, while the rest saw a 25 basis point cut for a second consecutive meeting. The bank in May unexpectedly cut the benchmark rate, resuming its policy easing cycle to bolster economic recovery in a turbulent global environment.

“Globally, policy uncertainty has intensified due to ...