Sri Lanka’s Central Bank holds policy interest rates at current levels

The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 14.50% and 15.50%, respectively.

The decision was taken at a meeting held yesterday (January 24), in view of the recent and expected developments and projections on the domestic and global macroeconomic fronts.

Accordingly, CBSL was of the view that the maintenance of the prevailing tight monetary policy stance is imperative to ensure that monetary conditions remain sufficiently tight to rein in inflationary pressures.

“Such tight monetary conditions, together with the tight fiscal policy, are expected to adjust inflation expectations downward, enabling the Central Bank to bring inflation rates towards the desired levels by end 2023, thereby restoring economic and price stability over the medium term”, a statement issued by CBSL in this regard read.