The Central Bank of Sri Lanka (CBSL) has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 250 basis points.
Accordingly, the Standing Deposit Facility Rate and the Standing Lending Facility Rate have been reduced to 13.00 per cent and 14.00 per cent, respectively.
The decision was taken by the Monetary Board of the Central Bank of Sri Lanka, at its meeting held yesterday (May 31).
The Monetary Board arrived at this decision with a view to easing monetary conditions in line with the faster-than-expected slowing of inflation, gradual dissipation of inflationary pressures and further anchoring of inflation expectations.
The CBSL stated that 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.
Full report: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20230601_Monetary_Policy_Review_No_4_2023_e_E9qj4.pdf (NewsWire)