CB slashes policy interest rates by 2%

The Monetary Board of the Central Bank this morning announced a 200-basis point reduction in policy rates after slashing 250 basis points at the previous monetary policy review in June.

Accordingly, the Standing Deposit Facility Rate (SDFR) is now at 11 percent and the Standing Lending Facility Rate (SLFR) at 12 percent.

“The Board arrived at this decision following a careful analysis of the current and expected developments, including the faster-than-envisaged disinflation process and benign inflation expectations in the domestic economy, with the aim of enabling the economy to reach its potential and stabilising inflation at mid-single digit levels in the medium term, while easing pressures in the financial markets,” the Central Bank’s monetary policy review statement said.

Following is the web link to the full monetary policy statement released by the Central Bank this morning. https://www.cbsl.gov.lk/en/news/monetary-policy-review-no-5-of-2023