Sri Lanka's Central Bank cuts interest rates

The Monetary Board of the Central Bank of Sri Lanka, at its meeting held yesterday, January 29 decided to reduce interest rates by 50 basis points in a bid to stimulate the economy and encourage economic activity.

At its meeting, it was 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. In a media release, the Board said it 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. “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 statement said. (BS)