COLOMBO (NewsRadio); The Monetary Board of the Central Bank of Sri Lanka has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at its current levels.
Accordingly, the SDFR and the SLFR will continue to remain at 14.50 per cent and 15.50 per cent, respectively.
The Central Bank said the Monetary Board, having noted the recent and expected developments and projections on the domestic and global macroeconomic fronts, is of the view that the maintenance of the prevailing tight monetary policy stance is imperative to ensure that monetary conditions remain sufficiently tight to rein in inflationary pressures.
The Central Bank added that the tight monetary conditions, together with the tight fiscal policy, will help bring inflation rates towards the desired levels by end 2023, and restore economic and price stability over the medium term.
The statement notes, that “the Board was of the view that the current monetary policy stance is appropriate to ensure that underlying monetary conditions in the economy remain sufficiently contained to drive inflation along the envisaged disinflation path. While some downward adjustment in market interest rates has been observed lately, the Monetary Board is of the view that there is sufficient space for excessive market interest rates, including lending interest rates to Small and Medium Sized Enterprises (SMEs), to adjust downwards considering the recent improvements in domestic money market conditions and sentiments along with the moderation in the yields on government securities.”
Policy interest rates and SRR
Standing Deposit Facility Rate (SDFR) -14.50%
Standing Lending Facility Rate (SLFR) -15.50%
Statutory Reserve Ratio (SRR) – 4.00%