Lanka raises rates

Agence France Presse

Colombo, June 15:

Sri Lanka’s Central Bank today raised benchmark interest rates by half a percentage point, the second increase in just over a month, amid deepening political woes for the government.

The Central Bank said its overnight repurchase rate was being raised from 7.75 per cent to 8.25 per cent while the reverse repo rate was being increased from 9.25 per cent to 9.75 per cent.

The move comes a day before the main Marxist coalition partner, People’s Liberation Front, (the JVP) is set to quit the government over a controversial aid sharing deal with Tamil Tiger rebels.