The Central Bank of Sri Lanka has decided to maintain the current policy interest rates at their current level.
It was at the meeting held yesterday (24) by the Monetary Board of the Central Bank of Sri Lanka.
Accordingly, it has been decided to maintain the Central Bank’s Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) at the current level of 14.50% and 15.50%, respectively.
Recent and expected developments and projections on domestic and global macroeconomic fronts have been considered when deciding.
It was of the view that maintaining the existing tight monetary policy stance is essential to ensure that monetary conditions remain sufficiently tight to contain inflationary pressures.
Such tighter monetary conditions and tighter monetary policy are expected to lower inflation expectations.
By the end of 2023, the central bank will be able to bring inflation rates to desired levels, thereby restoring economic and price stability in the medium term, the central bank said.