Current Accommodative Monetary Policy Stance to Continue: CBSL

COLOMBO (News 1st): The Central Bank of Sri Lanka (CBSL) has decided to reaffirm its commitment to continue the ongoing accommodative monetary policy stance, at a meeting held on Wednesday (Mar. 03). The Monetary Board has decided to maintain the Standing Deposit Facility Rate and the Standing Lending Facility Rate at their current levels of 4.5 percent and 5.5 percent respectively, a media statement issued by the Central Bank noted on Thursday (Mar. 04). This decision was reached taking into account the recent slowdown in credit disbursements to the private sectors and inadequate lending to productive sectors of the economy, the statement read. According to the CBSL statement, the national economy is expected to make a notable recovery in 2021 and that the performance of the external sector is being closely monitored by the Central Bank. The easing policy measures have resulted in a stable low interest rate environment while providing a positive real return to savers, the statement further read. Accordingly, in consideration of all these recent developments the Monetary Board has decided to maintain the policy rates at current levels.