Sri Lanka new CBSL Governor raised the key policy rate by 700 points after a two decade

Sri Lanka inflation hit 18% in March, currency continued to be under pressure due to depleting gross official reserves and lack of foreign currency inflows have warrant a steep interest rate adjustment. In response to those developments in capital market Treasury bill rates were allowed to increase by substantial percentage at the resent primary auctions. CBSL, with new governor decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 700 basis points to 13.50 per cent and 14.50 per cent, respectively, which is very effective decision towards reducing the money printing and stabilizing the LKR.