Sri Lanka's central bank cuts interest rates by 25 basis points to support economic growth and secure IMF funding.
Sri Lanka's central bank has cut interest rates by 25 basis points to 8.25% for the Standing Deposit Facility Rate and 9.25% for the Standing Lending Facility Rate. The move aims to support economic growth and help the country recover from its worst financial crisis in decades. The cuts follow a 50 basis point reduction in March, marking a partial reversal of the 1,050 basis point increase since April 2022. Sri Lanka's economy is predicted to grow by 3% in 2024 after securing a $2.9 billion lending programme from the International Monetary Fund (IMF) earlier this year. In 2022, the country's economy shrank by 7.3%, and it contracted by 2.3% in 2021 due to a record shortfall of dollar reserves and a massive debt crisis.
July 24, 2024
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