The Central Bank of Sri Lanka (CBSL) has decided to further tighten the Monetary Policy Stance by increasing the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 100 basis points.
Issuing a statement the bank said its Monetary Board has decided to increase the SDFR by 6.50% and the SLFR by 7.50%.
The CBSL pointed out that considering the severity of the external shocks and continued disruptions to domestic economic activity, the Monetary Board was of the view that a comprehensive policy package containing both traditional and non-traditional measures, along with other initiatives that have an impact on the overall economy, is essential to counter such economic headwinds.
Accordingly, after carefully considering the current and expected macroeconomic developments both globally and domestically, the Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 03 March 2022, decided to reinforce its stance adopted in January 2022, and decided to:
a) increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points each, to 6.50 per cent and 7.50 per cent, respectively;
b) revise upwards the caps imposed on interest rates applicable to credit cards to 20 per cent per annum, on pre-arranged temporary overdrafts to 18 per cent per annum, and on pawning facilities to 12 per cent per annum. Directions to effect these regulated interest rates will be issued shortly.
Download Full Report: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20220304_Monetary_Policy_Review_No_2_2022_e_D9fs3.pdf
(NewsWire)
