Sri Lanka’s central bank kept its benchmark interest rates unchanged on Thursday, in line with expectations, saying the island nation’s economy is operating below its potential although it’s expected to recover over the medium term.

The central bank kept the standing deposit facility rate (SDFR) at 7.25 percent and standing lending facility rate (SLFR) at 8.75 percent.

The worst drought in 40 years, followed by the most severe flooding in over a decade, curbed growth last year, while disrupting supply chains and pushing the inflation rate above the central bank’s target range of 4 percent to 6 percent. Consumer prices rose 5.8 percent in January from a year ago.

“The decision of the Monetary Board is consistent with the objective of maintaining inflation at mid-single digit levels over the medium term and thereby facilitating a sustainable growth trajectory,” the central bank said. “The economy is currently operating at a level below its potential,” but should recover from weather-related effects as trade and foreign direct investment picks up, it said.