Monetary Board relaxes policy interest rates

The Monetary Board of the Central Bank relaxes policy interest rates by 250 basis points. Accordingly, SDFR comes down to 13 percent and SLFR to 14 percent.

The policy rates were reduced due to the quicker-than-expected deceleration in inflation.

The Monetary Board recommended requesting the government to consider phasing out the remaining restrictions on most items of merchandise imports.

Sri Lanka’s gross official reserves are estimated at US$ 3 billion as at end of May 2023, including a US$ 1.4 billion swap facility with the People’s Bank of China.

Following is the link to the CBSL statement in full:

https://www.cbsl.gov.lk/en/news/monetary-policy-review-no-4-of-2023