Sri Lanka Holds Rates After Cutting Bank Cash Ratio for Growth

08/24/2023 10:19
Sri Lanka Holds Rates After Cutting Bank Cash Ratio for Growth

Sri Lanka stood pat on borrowing costs for the first time in three meetings, after slashing the cash ratio for banks to bolster domestic liquidity and growth.

  • Benchmark standing lending facility rate left unchanged at 12%
  • Monetary authority wants further reduction in market rates

Updated on

Sri Lanka stood pat on borrowing costs for the first time in three meetings, after slashing the cash ratio for banks to bolster domestic liquidity and growth.

The Central Bank of Sri Lanka kept the standing lending facility rate at 12%, according to a statement on its website on Thursday. Only one of the six economists surveyed by Bloomberg had forecast a hold while the rest predicted cuts ranging from 100-200 basis points.

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