Sri Lanka’s central bank held its benchmark interest rate at 11%, following a previous cut of 450 bps. Annual headline inflation fell for the tenth month to 6.3% in July, the lowest since September 2021, driven by moderating energy and food prices. Core inflation also eased to 6.1%. The board expects positive economic growth in H2 2023 but warns that weather disruptions and modest external demand could hinder near-term growth. The Standing Lending Facility Rate remained at 12%.