Colombo, 1/6: Sri Lanka’s central bank caught markets off-guard by cutting its key rates by 250 basis points on Thursday, as it cited inflation easing faster than expected and the price outlook turning more benign.
The Central Bank of Sri Lanka (CBSL) cut its standing deposit facility rate and standing lending facility rate to 13 per cent and 14 per cent, respectively, from 15.5 per cent and 16.5 per cent previously.
“Policy interest rates reduced in view of the faster deceleration of inflation, benign inflation outlook and the easing of BOP (balance of payment) pressures, thereby reinforcing the rebound of the economy,” the CBSL said.
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