The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 04 April 2023, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 15.50 per cent and 16.50 per cent, respectively.
Having considered the recent and expected economic developments, and macroeconomic projections on domestic and global fronts, the Monetary Board decided that the maintenance of the prevailing tight monetary policy stance is necessary.
This will ensure that monetary conditions remain sufficiently tight to facilitate the continuation of the ongoing disinflation process amidst the improvements in market sentiments following the finalisation of the Extended Fund Facility (EFF) from the International Monetary Fund (IMF) and the downward shift in elevated market interest rates reflecting the falling risk premia, the Central Bank said in a press release.
Meanwhile, Sri Lanka’s total official reserve assets have increased to USD 2.7 billion as at the end of March 2023. This includes a swap facility from the People’s Bank of China, amounting to USD 1.4 billion which is subject to conditionalities on usability.
