Sri Lanka’s Central Bank raises rates to contain record high inflation
The Central Bank of Sri Lanka (CBSL) raised its key rates by a full percentage point on Thursday to tackle record high domestic inflation and to contain any build-up of adverse inflation expectations.
The Standing Lending Facility rate was raised to 15.50% while the Standing Deposit Facility Rate rose to 14.50%.
“The Board was of the view that this policy adjustment would help guide inflation expectations to be anchored around the targeted level of headline inflation over the medium term, while curtailing any build-up of underlying demand pressures in the economy,” CBSL said in its statement.
The island of 22 million people is wilting under a severe foreign exchange shortage that has it struggling to pay for essential imports of fuel, fertilisers, food and medicine.
(Reuters)
Latest Headlines in Sri Lanka
- PUCSL warns CEB: Submit tariff plan by December 6, 2024 or face action November 25, 2024
- ADB approves $200 million to modernize Sri Lanka’s power sector November 25, 2024
- Over 120,000 tourists arrive in Sri Lanka in first 20 days of November 2024 November 25, 2024
- Court orders release of Sujeewa Senasinghe’s SUV on Rs. 100 million bond November 25, 2024
- IMF backs Sri Lanka’s plan to boost revenue with vehicle imports November 25, 2024
