CBSL increases policy interest rates
March 3, 2023 05:12 pm
The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to raise the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 100 basis points.
Accordingly, the SDFR and the SLFR will be raised to 15.50% and 16.50%, respectively, with effect from the close of business today (03 March).
The decision was taken at a meeting held this afternoon, in an attempt to fulfill the pre-requisites required to move forward with the finalisation of the International Monetary Fund (IMF) Extended Fund Facility (EFF) arrangement Sri Lanka currently awaits.
Issuing a statement in this regard, however, the CBSL assured that the Monetary Board and the IMF staff reached a consensus to raise the policy interest rates in a smaller magnitude compared to the adjustment envisaged during the initial stage of negotiations.
“The Monetary Board anticipates that this monetary policy action would help lower the spread between policy interest rates and higher market interest rates", the statement read.
Attached below is the full statement issued by the CBSL:
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