“COLOMBO: “Sri Lanka Maintains Rates to Curb Inflation & Bolster Stability”, Sri Lanka’s Central
Bank Maintains Interest Rates Amid Economic Recovery Efforts”, The decision to keep interest rates unchanged comes as Sri Lanka aims to stabilize its economy after enduring its most severe financial
crisis in years. By holding rates steady, authorities seek to manage inflationary pressures and support efforts to stimulate growth.
“Sri Lanka’s Central Bank Keeps Rates Steady: Standing Deposit Facility at 8.50%, Standing Lending
Facility at 9.50%”. The Central Bank of Sri Lanka announced that it would maintain the Standing
Deposit Facility Rate at 8.50% and the Standing Lending Facility Rate at 9.50%, according to a
statement released.
This decision is part of the bank’s strategy to manage inflation and promote economic stability
amid ongoing efforts to recover from a significant financial crisis.
“Sri Lanka Central Bank Decision Surprises Market: Expected Rate Cut Unfulfilled”
The Central Bank of Sri Lanka’s decision to maintain interest rates at current levels has surprised some market observers. Despite expectations from eight out of 15 economists and analysts surveyed by
Reuters for a 50 basis points rate cut, the bank opted to keep rates unchanged. This unexpected
move reflects the complexities of Sri Lanka’s economic landscape as it strives to navigate through its recent financial challenges.
Sri Lanka’s key annual inflation rate was at 1.5 per cent in April, down from 6.4 per cent at the
start of the year, and prices appear well anchored, the central bank said in a statement. According
to a statement from the Central Bank of Sri Lanka, recent data suggests that headline inflation may
fall below the targeted 5% level in the coming months. This projection is attributed to a combination
of administered price adjustments and a decrease in food prices. However, the bank also acknowledges the existence of some upside risks to this forecast.
The Central Bank of Sri Lanka (CBSL) reduced interest rates by 50 basis points in March, continuing its easing cycle. This move marks a cumulative decrease of 700 basis points since June. It also serves as
a partial reversal of the 1,050 basis points increase implemented since April 2022, when the country
faced a severe economic crisis.
The Central Bank of Sri Lanka (CBSL) has reiterated its stance on an accommodative monetary
policy, stating that there is still room for market lending interest rates to decrease. In a statement,
the CBSL emphasized the importance for lenders to promptly pass on the benefits of lower rates
to borrowers, highlighting the potential positive impact on the economy.
