The Central Bank of Sri Lanka has decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR).
Issuing a statement the Central Bank said the decision was reached during the Monetary Board meeting held yesterday.
Accordingly the Standing Deposit Facility Rate and the Standing Lending Facility Rate has been increased by 50 basis points each, to 5.00 per cent and 6.00 per cent, respectively.
In addition, the Monetary Board decided to increase the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of licensed commercial banks (LCBs) by 2.0 percentage points to 4.00 per cent, with effect from the reserve maintenance period commencing on 1st of September 2021.
These decisions were made with a view to addressing the imbalances on the external sector of the economy and to preempt the buildup of any excessive inflationary pressures over the medium term, amidst improved growth prospects.