Interest rates up by 25 basis points

COLOMBO: Sri Lanka's Central Bank said it was raising key interest rates by 25 basis points for the first time in 2006 to control excessive growth in money supply and to rein in inflation.

It said it was increasing the repurchase rate to 9 percent and the reverse repurchase rate to 10.50 percent. The previous rate hike was a quarter point increase in December.

"In view of the continuing high oil prices over which Sri Lanka has no control, there is an urgent need to respond effectively to these new developments," the central bank said in a statement.