trending Market Intelligence /marketintelligence/en/news-insights/trending/mZLha7ZaGoKsgcQ4i9L_NA2 content esgSubNav
In This List

Sri Lanka's central bank cuts rates

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Sri Lanka's central bank cuts rates

The Central Bank of Sri Lanka cut interest rates to accelerate inflation, support a slowing economy and aid its recovering tourism sector after attacks in Easter of 2019.

The bank lowered its standing deposit facility rate and standing lending facility rate by 50 basis points each to 7% and 8%, respectively, having already cut the rates by 50 basis points in May.

The Sri Lankan central bank said the country's economic growth would be modest in 2019, amid a global slowdown.

Headline and core inflation have remained low in recent months, partially driven by subdued food prices. The central bank expects inflation to remain in the lower bound of its target range of 4%-6% for the rest of the year.

"We think this will probably mark the last cut this year," wrote Alex Holmes, Asia economist at Capital Economics. "While the bank will be keen to support the economy, the need to prop up the currency will limit the scope for further loosening."