(Updates with details on inflation, tourism) MUMBAI, May 20 (Reuters) - Sri Lanka’s central bank left its key policy rates steady on Thursday amid the renewed challenges posed by the third wave of the COVID-19 pandemic and said it remains committed to maintaining the current accommodative monetary policy stance. “The third wave of the COVID-19 pandemic has disrupted the ongoing recovery of economic activity,” the Central Bank of Sri Lanka (CBSL) said in a statement. On account of the “prevailing low inflation environment and well-anchored inflation expectations” alongside the pandemic-related challenges, “the board remains committed to maintaining the current accommodative monetary policy stance to support the sustained revival of the economy”, it said. Although COVID-19 case numbers have eased slightly from a record increase of 2,672 cases on May 9, the South Asian island nation has been reporting 2,200 infections or more every day in the past week, according to Johns Hopkins University data. CBSL kept the standing deposit facility rate and the standing lending facility rate at 4.50% and 5.50%, respectively. The statutory reserve ratio was also left unchanged at 2%. IMPACT LOWER THAN PVS WAVES The apex bank noted that the adverse effects on economic activity are expected to be less than during the first two waves due to the selective nature of mobility restrictions and the ongoing vaccination drive. It said while some inflationary pressures could emerge in the near term driven by supply-side disruptions due to the third wave as well as adverse weather conditions, inflation is expected to remain broadly within the desired target range of 4%-6% during the remainder of the year. The bank expects some upward pressure on inflation due to the envisaged improvement in demand conditions on account of the stimulus provided but those will be mitigated through timely measures, it said. CBSL said the historically low interest rates and high level of rupee liquidity have resulted in the acceleration of the private sector credit while the exteral sector also remains resilient despite a multitude of challenges. It warned however that the recent surge in the global spread of the virus could affect the recovery of the tourism industry and pose fresh external sector challenges. Tourism, one of the major sources of revenue for the island nation, has suffered since the Easter bomb attacks in May 2019 and on account of the pandemic. “The third wave has once again highlighted the disruptive nature of the pandemic and the challenges faced in sustaining the economic recovery amidst the pandemic. It has also highlighted the need for continued fiscal and monetary support to place the recovery process on a firm footing,” CBSL said. (Reporting by Swati Bhat and Chandini Monnappa; Editing by Muralikumar Anantharaman and Stephen Coates) Our Standards: The Thomson Reuters Trust Principles.