Central Bank reduces its Policy Interest Rates

The Central Bank of Sri Lanka, during a meeting held yesterday (22), has decided to reduce its Policy Interest Rates by 50 basis points.

Accordingly, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank have been reduced by 50 basis points to 7 per cent and 8 per cent, respectively.

The Monetary Board of the Central Bank arrived at this decision following a careful analysis of current and expected developments in the domestic economy and the financial market as well as the global economy.

The decision was taken with the aim of further supporting the revival of economic activity in the context of low inflation prevailing at present and the medium-term inflation outlook, which is well anchored in the desired 4-6 per cent range, the Central Bank said.

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