Central Bank of Sri Lanka

Sri Lankan Monetary Policy Settings Deemed Still Appropriate

January 27, 2015

The latest policy review at the Central Bank of Sri Lanka retained an 8% lending rate, a 6.5% deposit rate, and a 6% reserve requirement ratio.  The interest rates arrived at current levels after reductions in each of 25 bps in December 2012, 50 bps in May 2013 and 50 bps in October 2013, plus […] More

Central Bank of Sri Lanka

November 18, 2014

The central bank lending rate (reverse repo) and borrowing rate (repo) have been at 8.0% and 6.5% since the former was cut from 8.5% last January.  Between December 2012 and October 2013, each of those rates also were lowered in three steps by a cumulative 125 basis points.  Falling inflation justified these reductions.  On-year CPI […] More

Central Bank of Sri Lanka Tweaks Policy to Promote Faster Bank Lending

September 23, 2014

A quarterly monetary policy review released today applauds Sri Lanka’s buoyant growth and benign inflation but expresses disappointment with the pace of bank lending in spite of previous reductions of the central bank’s key interest rates.  The central bank lending rate (a.k.a. reverse repo rate) and its repo rate were sliced by 25 basis points […] More

Central Bank of Sri Lanka: No Rate Change

June 18, 2014

Between December 2012 and October 2013, Sri Lankan monetary authorities implemented three cuts in their key lending and deposit rates totaling 125 basis points.  In January of this year, there was a further 50-basis point reduction of the lending rate, which with an unchanged deposit rate narrowed the reverse repo of 8.0% versus repo rate […] More

Central Bank of Sri Lanka Leaves Key Interest Rates Unchanged

May 20, 2014

Sri Lankan central bank officials left the reverse repo and repo rates at 8.0% and 6.5%, respectively, as expected.  A released statement stressed benign continuing inflation prospects.  Both rates had been cut by 25 basis points in December 2012, 50 bps in May 2013, and 50 bps in October 2013.  The reverse repo but not […] More

Central Bank of Sri Lanka

March 21, 2014

For a second meeting since a 50-basis point cut of the Sri Lankan reverse repo rate to 8.0% — a move that was opposed by the IMF — officials elected not to change either that interest rate or the borrowing repo rate of 6.5%.  Both rates had been cut by 25 basis points in December […] More

Central Bank of Sri Lanka Eases Stance

January 2, 2014

Sri Lanka’s central bank surprised markets somewhat with a cut of its main lending rate to 8.0% from 8.5%.  The borrowing rate was not changed and will stay at 6.5%.  Both interest rates had been cut in December 2012 by 25 basis points, May 2013 by 50 bps and, most recently, in mid-October again by […] More

Central Bank of Sri Lanka

December 9, 2013

The repo and reverse repo rates were left unchanged this month, matching the decision made at November’s meeting, and the current stance was deemed “appropriate” in a released statement from monetary officials.  The statement lists several successful developments — faster growth last quarter, slower inflation last month, more favorable balance of payments trends, and a […] More

Central Bank Rate Cut in Sri Lanka

October 15, 2013

The third interest rate cut since December has been implemented by officials at the Central Bank of Sri Lanka.  The repo and reverse repo rates were each sliced by 50 basis points and now become 6.5% and 8.5%.  The reductions match ones made in May.  A set of 25-bp cuts were done in December 2012.  […] More

Central Bank of Sri Lanka Keeps Stance Unchanged

September 17, 2013

The reverse repo and repo rates were left respectively at 9.0% and 7.0% where they’ve been since reductions of 25 basis points last December followed by cuts of 50 bps in May 2013.  A statement from bank officials again called the present stance appropriate and welcomed signs that lower short-term interest rates are spreading more […] More

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