Sri Lanka Interest Rate2003-2020 Data | 2021-2023 Forecast | Calendar | Historical

The Central Bank of Sri Lanka held its benchmark interest rate unchanged at 4.5 percent at its November meeting, but stressed the need for a continued downward adjustment in lending rates to boost economic growth in the absence of demand driven inflationary pressures, particularly considering the significant levels of excess liquidity prevailing in the domestic money market. The Bank has cut interest rates by a total 350 basis points since May last year, when the deadly Easter bomb attacks triggered a slump in investment and tourism which was followed by the coronavirus pandemic in early 2020. The central bank said that accommodative monetary policy stance would continue and that it will introduce maximum interest rates on mortgage backed housing loans for salaried workers and set lending targets for select sectors in the near future.The Standing Lending Facility Rate (SLFR) was also kept at 5.5 percent.

The Central Bank of Sri Lanka kept its benchmark interest rate unchanged at 4.5 percent at its October meeting, saying the economic recovery is expected to pick-up speed despite the latest increase in coronavirus cases. The policymakers said it will maintain its accommodative policy settings for now. The Bank will continue to monitor domestic and global macroeconomic and financial market developments and take further measures appropriately to ensure that the economy promptly reverts to a sustained high real GDP growth path, while maintaining inflation in the 4-6 percent range under its flexible inflation targeting framework. The Bank has cut interest rates by a total 350 basis points since May last year, when the deadly Easter bomb attacks triggered a slump in investment and tourism which was followed by the coronavirus pandemic in early 2020. The Standing Lending Facility Rate (SLFR) was also held at 5.5 percent.

The Central Bank of Sri Lanka lowered its benchmark standing deposit facility rate by 100 bps to a new record low of 4.5 percent at its July meeting, aiming to boost the economy hit by the COVID-19 crisis and as inflation pressures remain subdued. The standing lending facility rate was also cut by 100 bps to 5.5 percent.

The Central Bank of Sri Lanka slashed its benchmark standing deposit facility rate by 50bps to 5.5 percent during an emergency meeting in early May, to support the economy to weather the adverse economic impact caused by the COVID-19 pandemic, given subdued inflationary pressures. The standing lending facility rate was also lowered by 50bps to 6.5 percent.