v2025

v2025 (2)

Central Bank to maintain policy interest rates at current levels

The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on Monday, decided to maintain policy interest rates at their current levels. 

Accordingly, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank will remain at 7.25 per cent and 8.50 per cent, respectively. 

The Board arrived at the above decision after carefully considering current and expected developments in the domestic and global economy, with the aim of stabilising inflation at midsingle digit levels in the medium term to support growth. Tight monetary policy conditions are observed globally with a continuous strengthening of the US dollar. 

The broad based strengthening of the US dollar subsequent to the increase in policy interest rates by the Federal Reserve and expectations of further interest rate hikes have exerted pressure on emerging market economies (EMEs). 

In response, EMEs with significant pressure on local currencies have tightened their monetary policy stance by raising policy interest rates. Meanwhile, the recent upward trend observed in international oil prices is likely to exacerbate challenges faced by the global economy.

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