By: Isuru ParakramaColombo (LNW): The Central Bank of Sri Lanka (CBSL) has relaxed its monetary policy stance, by slashing the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 250 basis points, following a meeting held by the Bank’s Monetary Board yesterday (31).
Accordingly, the SDFR has been reduced to 13 per cent and the SLFR, 14 per cent.
The decision has been made in response to the slowing of inflation, which is happening faster than expected, gradual dissipation of inflationary pressures and further anchoring of inflation expectations, a statement by the CBSL said.
“The commencing of such monetary easing is expected to provide an impetus for the economy to rebound from the historic contraction of activity witnessed in 2022, while easing pressures in the financial markets,” it added.
Full statement: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20230601_Monetary_Policy_Review_No_4_2023_e_E9qj4.pdf