Central Bank of Sri Lanka

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

Central Bank of Sri Lanka

August 16, 2013

As in June and July, Sri Lankan central bank interest rates were left unchanged after this month’s policy meeting, but a statement released by the authorities hints of a possible further cut in the future.  The repo rate and reverse repo rates were cut by 25 basis points last December and another 50 bps on […] More

Sri Lankan Repo Rate Kept at 7.0% after Being Cut Last Month

June 7, 2013

The repo and reverse repo rates were previously sliced by 25 basis points last December and by 50 bps on May 10.  They currently stand at 7.0% and 9.0%, respectively. May’s reduction was set against the backdrop of slower and slower-than-anticipated first-quarter growth, a stronger rupee, satisfactory external balances, and decelerations of core inflation and […] More

No Central Bank Rate Change in Sri Lanka

February 12, 2013

Sri Lankan central bank authorities have retained a 7.5% repo rate (and 9.5% reverse repo), just as they decided in January.  The rates were cut by 25 basis points in December once progress had been observed in cutting non-oil import growth and domestic credit expansion.  Those were the goals sought when central bank rates were […] More

Central Bank of Sri Lanka

January 17, 2013

Calling their current monetary policy stance “appropriate,” Sri Lankan central bank officials did not implement a follow-up easing this month after having cut the repo and reverse repo rates by 25 basis points each in December to 7.5% and 9.5%.  October’s reductions were the first cuts since 2009 and left rate levels 50 basis points […] More

Central Bank Rate Cut in Sri Lanka

December 12, 2012

The intended impact of rate hikes of 50 basis points last February and another 25 bps in April have been largely reaped.  Money and credit growth are slowing.  Real economic growth, although ample, has moderated, and the trade deficit has narrowed.  In a newly released statement, officials defended today’s reversal of last April’s tightening.   “Having […] More

Sri Lanka: No Further Monetary Tightening at This Time.

March 14, 2012

The Sri Lankan economy has issues that often require monetary policy tightening: an excessive trade deficit, private domestic credit growth of more than 30% on year, diminished international reserves, and a vulnerability.  A number of measures were taken earlier this year to address the problems including an 18% cap on credit growth and, on February […] More