Central Bank of Sri Lanka

Sri Lankan Interest Rates Cut

May 31, 2019

The Central Bank of Sri Lanka cut its interest rates by a half percentage point, citing the Easter terrorist attacks there, easier monetary policies elsewhere, downward rigidity in Sri Lankan market rates, slowing private sector credit expansion, a narrowed trade deficit, and subpar domestic growth. A recent uptick of inflation was dismissed as not being […] More

Financial Markets Feeling the Strain of A Breakdown in International Trade Relations

May 31, 2019

President Trump is imposing a tariff on all U.S. imports from Mexico in retaliation of that country’s failure to contain the flow of migrants crossing into the United States. China is ramping up its response to President Trump’s recent protectionist acts against Chinese exports and especially the action against Huawei. U.S.-EU trade talks also have […] More

Persistent Volatility as 2018 Winds Down

December 28, 2018

U.S. equities whip-sawed wildly in Thursday’s session, closing high. The upward direction carried into early Friday, with markets gaining 0.9% in Taiwan, 0.8% in India, 1.0% in Australia, 0.6% in South Korean, 0.4% in China and Hong Kong but dipping 0.3% in Japan. Markets in Europe are up so far 2.4% in Switzerland and between […] More

Intensifying Concern that Euro Area Is Drifting Into a Fresh Debt Crisis over Italy

October 2, 2018

A quote from European Commission President Jean-Claude Junker set the tone for trading today: “I would not wish that, after having really been able to cope with the Greek crisis, we’ll end up in the same crisis in Italy.” Ten-year sovereign debt yields, while dropping today by 3 basis points in France, Germany, The Netherlands, […] More

Central Bank of Sri Lanka

May 11, 2018

The Standing Lending Facility Rate had been reduced 25 basis points in April to 8.5%, but today’s policy review held that rate as well as the 7.25% Standing Deposit Rate steady this time, declaring the current stance “suitable” in a released statement . The goal is for inflation to stabilize in the mid-single digits, that […] More

Central Bank of Sri Lanka

April 4, 2018

The Standing Lending Facility Rate at the Central Bank of Sri Lanka has been cut 25 basis points to 8.50%. By keeping the Standing Deposit Facility rate unchanged at 7.25%, the range between them has narrowed as a result. According to a released statement, inflation has decelerated as a result of softer food prices, inflation […] More

No Change Made in Sri Lankan Monetary Policy Stance

February 16, 2018

The Central Bank of Sri Lanka’s standing deposit facility rate and standing lending facility rate have been at 7.25% and 8.75% since an increase of 50 basis points in July 2016. That was the second such reduction of 2016 and along with an earlier move in February reversed two percentage points of easing engineered between […] More

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

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