Sri Lanka Central Bank keeps policy rates steady at record lows

Central Bank of Sri Lanka

Sri Lanka’s Central Bank kept key policy rates steady at record lows for an 12th straight month on Tuesday, as expected, and said inflation was expected to ease further.

The Central Bank also kept a 5 percent lower repo penalty rate paid to banks that use the standing deposit facility more than three times a month, to boost credit growth by reducing the banks deposits into the central bank.

It left the standing deposit facility rate (SDFR) and the standing lending facility rate (SLFR) unchanged at 6.50 percent and 8.00 percent, respectively. The commercial banks’ statutory reserve ratio was unchanged at 6.00 percent.

The bank said inflation would be curbed by the fall in fuel prices, and an expected reduction in the administered prices of other key commodities.