Central Bank of Sri Lanka maintains Policy Rates to support Economic Recovery

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

This decision was made during the Board’s meeting on May 27, 2024, after a careful assessment of current and expected macroeconomic developments and potential risks both domestically and globally. The aim is to maintain inflation at the targeted level of 5 percent over the medium term while supporting the economy in reaching its potential, according to the statement.

Although the medium-term inflation outlook is compatible with the current policy interest rates and inflation expectations are well anchored, the Board noted the necessity of further reducing market lending interest rates to align with policy and benchmark interest rates.

This reduction is crucial for easing domestic monetary conditions and fostering domestic economic recovery.