Sri Lanka’s Central Bank reduces bank rate

Apr 16, 2020 (LBO) – The Monetary Board of the Central Bank at its meeting held yesterday, having observed the cumulative reduction of the key policy interest rates of SDFR and SLFR by 200 basis points each since 31 May 2019, has decided to allow the bank rate to automatically adjust in line with the SLFR, with a margin of +300 basis points.

Accordingly, with effect from today (16th), the bank rate, which is an administratively determined rate that could be used in periods of emergency, has been effectively reduced by 500 basis points from 15.00 percent to 10.00 percent.