CB Governor signals lowering of interest rates in second half of 2023

The stability of Sri Lanka’s banking system will be safeguarded and public deposits will be protected when the country’s domestic debt is optimised, Central Bank Governor, Dr. Nandalal Weerasinghe said on Wednesday addressing a public forum.

He said that the Central Bank has taken steps to stabilize the financial system of the country.Weerasinghe said there are many rumors on the safety of public deposits and the stability of the banking system.

When the Governor was asked when the high interest rates would be reduced and he said they were likely to come down during the second half of the year in line with expected lowering of inflation. “Inflation is coming down faster than we expected. Interest rates too will come down in line with inflation expectations.” (RK)