Sri Lanka Interest Rate2003-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Central Bank of Sri Lanka kept its key interest rate unchanged at 4.5% at its March meeting, citing the need for low lending rates until the economy shows strong signs of sustained recovery. Policymakers said they were aware of the recent slowdown in credit disbursements to the private sector and inadequate lending to productive sectors. The central bank also mentioned that the economy is expected to make a notable recovery this year, supported by policy stimulus and improving business sentiments. Both headline and core inflation remain low, reflecting the subdued aggregate demand conditions, in spite of volatile food prices. Policymakers said they will continue to monitor domestic and global macroeconomic and financial markets and take further proactive measures to support the economy. The Standing Lending Facility Rate was also held at 5.5%.

The Central Bank of Sri Lanka kept its benchmark interest rate unchanged at 4.5% at its January 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 policy makers said that they will continued to monitor domestic and global macroeconomic and financial market developments and take further measures appropriately to ensure that the economy promptly reverts to its true potential of a high growth trajectory, while maintaining inflation in the targeted 4-6% range. For 2020, the Bank projected economic contraction on record by around 3.9%, and the recovery forecast for next year. The Standing Lending Facility Rate was also held at 5.5%.

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.