Sri Lanka’s central bank is expected hold policy rates unchanged for a third consecutive meeting on Thursday in its bid to boost economic growth and help mitigate the fallout from potential U.S. tariffs, a Reuters poll showed.
The country grew at a better-than-predicted pace of 5% in 2024, a turning point after its economy tumbled into a deep financial crisis, exacerbated by a severe shortage of dollars, three years ago.
All twelve of the analysts and economists polled by Reuters unanimously expect the monetary authority will maintain its policy stance amid benign inflation, stable growth, and uncertainty over simmering U.S. tariff tensions.
U.S. President Donald Trump’s administration imposed 44% tariffs on the island nation, which will affect about $3 billion of its exports and possibly undermine its economic recovery.
The U.S. subsequently suspended the tariffs for three months and officials from both sides are in talks to strengthen trade relations.