Central Bank maintains policy interest rates

The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at their current levels of 8.50 percent and 9.50 percent, respectively.

The Board arrived at this decision at its meeting held on May 27 after carefully assessing the current and expected macroeconomic developments and possible risks on the domestic and global fronts. The goal is to maintain inflation at the targeted level of 5 percent over the medium term while supporting the economy in reaching its potential.

While the medium-term inflation outlook remains compatible with the current level of policy interest rates and inflation expectations are well anchored, the Board said it observed the need for a further reduction in market lending interest rates in line with policy interest rates and other benchmark interest rates, which is imperative for easing domestic monetary conditions and domestic economic recovery.