Central Bank maintains policy interest rates unchanged

May 11, 2018 (LBO) – Monetary Board of the Central Bank at its meeting held on 10 May 2018 has decided to maintain policy interest rates at their current levels.

Accordingly, the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) remain at
7.25 per cent and 8.50 per cent, respectively.

The Board’s decision aims at stabilising inflation in mid-single digit levels in the medium term, thereby contributing to a favourable growth outlook for the Sri Lankan economy.

Central Bank said after a brief supply-driven uptick in the short term, inflation to stabilise in mid-single digit
levels.

In arriving at this decision, the Board has taken into consideration the recent global market developments, the macroeconomic impact of recent adjustments in administered prices, and the fact that more time is needed to assess the market and economic impact of the policy rate adjustment in April 2018.

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