Central Bank of Sri Lanka

Central Bank of Sri Lanka

November 7, 2017

The Monetary Policy Committee kept its deposit rate unchanged at 7.25% and its lending facility rate at 8.75%. The late increases in these rate were a pair of 50-basis point moves in February and July of 2016, and the levels are now the highest in a bit over four years. The post-meeting statement revises projected […] More

Central Bank of Sri Lanka

September 26, 2017

Once again, Sri Lanka’s Monetary Policy Committee elected not to change its key deposit and lending rates of 7.25% and 8.75%. They have been at those tight levels since a 50-basis point increase in July 2016. An earlier move of same magnitude had been implemented in February. Headline and core CPI inflation picked up somewhat […] More

Central Bank of Sri Lanka

August 3, 2017

From October 2012 to April 2015, Sri Lanka’s central bank key lending and deposit rates had been cut in four moves by two percentage points. Half of that reduction was subsequently reversed in two 50-basis point hikes administered in February and July of last year. Since July 2017, the standing deposit facility rate has stayed […] More

Central Bank of Sri Lanka

June 27, 2017

Following last week’s policy review, Sri Lanka’s key central bank deposit and lending rates were again maintained at 7.25% and 8.75%, the levels since a pair of 50-basis point increases implemented last year in February and July. A statement of explanation called the monetary policy stance “appropriate” and predicted that total and core CPI, which […] More

Central Bank of Sri Lanka

May 9, 2017

The statement released after the latest policy review by Sri Lanka’s Monetary Board calls the current stance appropriate, observes a deceleration in the capital city of Colombo, and projects a similar drop of inflation nationally to mid-single digits by the end of this year. Officials also expect credit growth to slow down in line with […] More

Central Bank of Sri Lanka Raises Deposit and Lending Rates by 25 Basis Points

March 24, 2017

This third round of tightening was smaller in size (25 basis points) than the incremental increases of 50 basis points each in February and July of 2016. The Standing Deposit and Standing Lending Rates now become 7.25% and 8.75%, the cumulative 125 basis point hike since last July reverses more than half of the previous […] More

Central Bank of Sri Lanka

February 7, 2017

Fifty-basis point increases in Sri Lanka’s central bank lending and deposit rates last February and July reversed half of the previous cumulative easing engineered from October 2012 to April 2015. The hikes in 2016 were done to curb excessive demand in order to pre-empt escalation of inflationary pressures and also to support the country’s balance […] More

Central Bank of Sri Lanka Keeps Monetary Policy Stance Unchanged

November 29, 2016

The Standing Deposit Facility Rate was kept at 7.0%, and the Standing Lending Facility Rate remains at 8.5%. Each had been raised twice earlier this year in February and July. Those moves and a 150-basis point hike of reserve requirements last December represent a trend reversal after four 50-basis point cuts between October 2012 and […] More

Central Bank of Sri Lanka

May 20, 2016

A 50-basis point hike in the lending and borrowing rates three months ago to 8.0% and 6.5% had been characterized by monetary officials as a pre-emptive move:  “Excessive growth of broad money fuelled by domestic credit expansion in the midst of continued upward trend in underlying inflation requires pre-emptive policy measures in order to contain […] More

Central Bank of Sri Lanka

March 18, 2015

Sri Lankan central bank interest rates consisting of an 8.0% reverse repo and a 6.5% repo rate were left unchanged for a 13th straight meeting.  Previously these rates had been reduced by 50 basis points each in December 2012 and August and October of 2013.  A statement released by the central bank reviewed Sri Lanka’s […] More