Sri Lanka central bank to keep rates steady

COLOMBO, Apr 2 (Reuters): Sri Lanka's central bank is expected to keep key interest rates unchanged on Wednesday after a rate review, but economists in a Reuters poll are not ruling out the possibility of a rate cut to help bolster economic growth that has slipped to a 16-year low.

The economy grew 3.1 per cent in 2017, the slowest since a recession in 2001 and well below the 4.5 per cent pace of 2016, revised government data showed last month.

Twelve of 14 economists in the survey predicted the central bank would keep its standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) unchanged at 7.25 per cent and 8.75 per cent, respectively.

Two analysts forecast a rate cut of 25 basis point in SLFR. All predicted the statutory reserve ratio (SRR) would remain at 7.50 per cent.