Interest Rates Tied to Inflation Central Bank Governor

The Central Bank Governor states that Sri Lanka will review policy interest rates based on inflation outlook and external factors such as Fed interest rates.

The Monetary Board raised the statutory reserve ratio of commercial banks by 1.50 percentage points to 7.50 per cent on Wednesday but left policy rates unchanged, the first change to the SRR since July 2013.

The raising of the SRR would curtail lending that has been seeping out of the balance of payments through non-oil imports he added.