CBSL slashes SDFR and SLFR by 200 basis points
Colombo (LNW): The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to slash the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the CBSL by 200 basis points to 11 per cent and 12 per cent, respectively.
The move comes in after ‘careful analysis of the current and expected developments, including the faster-than-envisaged disinflation process and benign inflation expectations in the domestic economy,’ the CBSL said.
This will aim the enabling of the country’s economy to reach its potential and stabilising inflation at mid-single-digit levels in the medium term, whilst easing pressures in the financial markets.
By doing so, the CBSL expects that the market interest rates, particularly lending rates, will adjust downwards adequately and swiftly.