Standing deposit facility rate - Latest News Update, Information, Photos & Videos on Standing deposit facility rate at Lokmat Times

Colombo, July 7 In an effort to fight inflation due to the ongoing economic crisis, the Monetary Board of the Central Bank of Sri Lanka's decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 100 basis points to 14.50 per cent and 15.50 per cent, respectively.This was done to tackle the rising domestic inflation, the bank said, adding that these rates are at the highest in 21 years, reports Xinhua news agency.The central bank said that they had noted a higher-than-expected increase in headline inflation recently.The high inflation is expected to remain in the period ahead, thus the Monetary Board was of the view that a further monetary policy tightening would be necessary to contain any build-up of adverse inflation expectations.The central bank said that the policy adjustments would help Sri Lanka stabilise its inflation to between 4 and 6 percent in the medium term.The bank said that they considered the impact of tighter monetary conditions on overall economic activity, including the micro, small, and medium scale businesses, and the financial sector performance, among others, against far-reaching adverse consequences of any escalation of price pressures across all sectors of the economy in the near term.The bank raised rates by 700 basis points in April but made no further moves at its previous policy meeting in May.It comes as annual inflation hit a record high of 54.6 per cent June as the cost of food rose by more than 80 per cent amid the crisis.The island nation of 22 million people has witnessed its foreign exchange reserves shrink due to economic mismanagement and the impact of the Covid-19 pandemic.As a result it has struggled to pay for imports of essential goods, including fuel, food and medicine.In May, it defaulted on its debts for the first time in its history after a 30-day grace period to come up with $78 million of unpaid debt interest payments expired.The country is currently in negotiations with the International Monetary Fund (IMF) over a bailout.Sri Lanka's government has said it needs $5 billion this year in support from the international community, including the IMF.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Pahalgam Terror Attack

Tahawwur Rana

IPL 2025

CM Devendra Fadnavis

Mumbai Local

Weather Update

Standing Deposit Facility RateFOLLOW

Standing deposit facility rate, Latest News

Politics :Sri Lanka's central bank chief says to reduce interest rates in 2023

Colombo, Jan 2 Steps will be taken in 2023 to reduce key interest rates in Sri Lanka, said ... ...

International :SL central bank maintains interest rates at current level

Colombo, Nov 24 The Central Bank of Sri Lanka on Thursday's announced its to maintain the Standing Deposit ... ...

International :SL increases key rates to 21-yr high to fight inflation

Colombo, July 7 In an effort to fight inflation due to the ongoing economic crisis, the Monetary Board ... ...