The Central Bank of Sri Lanka (CBSL) has opted to further relax its monetary policy stance, signaling continued confidence in the country’s path toward economic stabilization.
At its meeting held on the 21st, the Monetary Policy Board of the CBSL announced a 25 basis point cut in the Standing Overnight Lending Facility Rate, bringing it down to 7.75%. The decision reflects the Bank’s ongoing efforts to strike a balance between supporting economic growth and anchoring inflation expectations.
In a statement released following the meeting, the Central Bank emphasized that the move was made after a comprehensive evaluation of both domestic and global macroeconomic conditions past, present, and projected.
The CBSL reiterated that this policy adjustment is aimed at guiding inflation toward the medium-term target of 5%, while also encouraging the economy to gradually reach its full productive potential. As the country continues to navigate its recovery following a severe financial crisis, the rate cut underscores the Bank’s strategy of cautiously supporting demand without jeopardizing price stability.
This latest move marks another step in Sri Lanka’s broader macroeconomic recalibration, aimed at restoring investor confidence and laying the groundwork for sustainable growth.
