The Monetary Policy Board of the Central Bank of Sri Lanka has observed that there is a possibility of deflation in the near future.
The central bank also says that there is a possibility that inflation will go down to a level much lower than the target of 5% in the next few quarters.
This is mainly due to changes in regulated prices and the development of supply conditions.
In the meantime, the Central Bank of Sri Lanka has decided to maintain the current policy interest rates at their current level.
The Monetary Policy Board of the Central Bank of Sri Lanka took this decision in the meeting held yesterday (26).
Accordingly, the Regular Deposit Facility Rate (SDFR) will be maintained at the current level of 8.25% and the Regular Loan Facility Rate (SLFR) will be maintained at 9.25%.
In the medium term, the Monetary Policy Board has reached this decision after carefully considering the current and expected macroeconomic trends as well as the possible domestic and global risks and uncertainties in order to maintain inflation at the target level of 5%.
It also helps the economy reach its maximum capacity level.
