Sri Lanka's central.bank hikes rates as it seeks to curb rising prices

The Sri Lankan central bank raised interest rates on Thursday, as expected, to curb growing inflationary pressures in the economy but said the current rise in prices was largely fuelled by supply side disruptions which were expected to be transitory.

The rate increase will also help ease pressures on the external sector as the island nation battles a massive debt repayment crisis which several believe could end up with the country defaulting for the first time in its history.

The Central Bank of Sri Lanka (CBSL) raised the standing deposit facility rate and the standing lending facility rate by 50