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Central Bank reduces its policy interest rates

(UTV|COLOMBO) – The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points to 6.50 per cent and 7.50 per cent, respectively.

The Board arrived at this decision, at its meeting held on Wednesday (January 29), following a careful analysis of current and expected developments in the domestic economy and the financial market as well as the global economy, a release said.

“This decision supports a continued reduction in market lending rates, thereby facilitating the envisaged recovery in economic activity given the favourable medium term outlook for inflation, which is well anchored within the 4-6 per cent range,” the CBSL said.

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