The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on July 23, 2024, decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25 basis points (bps) to 8.25 percent and 9.25 percent, respectively.
This decision followed a careful assessment of current and expected macroeconomic developments and potential risks on both domestic and global fronts. The goal is to maintain inflation at the targeted level of 5 percent over the medium term while enabling the economy to reach its full capacity. The Board emphasized the need to signal the continuation of an eased monetary policy stance, aiming to further reduce market lending rates to support economic activity amidst a benign inflation outlook.
The Board noted that, based on available information, inflation is likely to remain below the target of 5 percent by a significant margin for the next several months before aligning with the targeted level over the medium term.
