CB Governor announces lowering of interest rates this year

Steps would be taken in 2023 to reduce key interest rates in Sri Lanka, Governor of Central Bank (CBSL) Dr. Nandalal Weerasinghe announced on Sunday.

Dr. Weerasinghe said that inflation would also fall below 5 percent in 2023.

He said that Sri Lanka’s inflation rate had eased to 57.2 percent in December from 61 percent in November. That reflected that the policies they had adopted since April 2022 had worked.

High interest rates had kept inflation down, but the rates would be reduced as the economy stabilised, he said.

The Central bank in November 2022 decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at the levels of 14.50 percent and 15.50 percent, respectively. (RK)