CBSL cuts policy rate to 7.75% to support economic recovery

The Monetary Policy Board of CBSL announced a 25 basis point cut in the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR), bringing the overnight policy rate down to 7.75%.

The decision follows a comprehensive assessment of both domestic and global macroeconomic conditions. The Central Bank stated that this move aims to steer inflation towards its 5% target over the medium term while encouraging economic activity to reach its full potential.

CBSL emphasized that the policy easing reflects confidence in the disinflation process and aims to maintain price stability, which is essential for sustained growth.

This latest policy action continues a trend of measured monetary easing, signaling the Central Bank’s commitment to supporting Sri Lanka’s ongoing economic recovery.