Sri Lanka holds policy rates to support sustained economic recovery

COLOMBO: Sri Lanka’s central bank left its key policy rates steady on Thursday, as the island nation’s economic recovery weakens on account of the disruptions caused by the third wave of the COVID-19 pandemic, Reuters reported.

The Central Bank of Sri Lanka (CBSL) kept the standing deposit facility rate and the standing lending facility rate at 4.50% and 5.50%, respectively. The statutory reserve ratio was also left unchanged at 2%.

“The Central Bank will continue to monitor domestic and global macroeconomic and financial market developments and stand ready to take appropriate measures, as and when necessary,” CBSL said.

It will also seek to ensure inflation remains in the targeted 4%-6% range while supporting a sustained economic recovery, it added.