Sri Lankan central bank decides to maintain interest rates at current levels

Dainik Nepal Jan 23, 2024 | 18:35

COLOMBO: Sri Lanka’s central bank decided to maintain the Standing Deposit Facility Rate and the Standing Lending Facility Rate at their current levels of 9 percent and 10 percent, respectively, its statement said on Tuesday.

The central bank said its monetary board arrived at this decision on Monday following a comprehensive assessment of domestic and international macroeconomic developments in order to maintain inflation at the targeted level of 5 percent over the medium term, while enabling the economy to reach its potential.

The board took note of the effects of the recent developments in taxation and supply-side factors that are likely to pose upside pressures on inflation in the near term. However, the board viewed that the impact of these developments would not materially change the medium term inflation outlook, according to the central bank.

The Sri Lankan economy recorded an expansion in the third quarter of 2023, following six consecutive quarters of economic contraction, said the central bank. Sri Lanka increased its interest rates significantly in 2022 to deal with rising inflation. The rates have been reduced several times in 2023. Xinhua


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