CBSL increases SDFR & SLFR rates

COLOMBO (News 1st); The Central Bank of Sri Lanka has decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points each, to 6.50 percent and 7.50 percent, respectively. The Central Bank said that the decision was made after carefully considering the current and expected macroeconomic developments both globally and domestically. In addition, the Monetary Board of the Central Bank has decided to revise upwards the caps imposed on interest rates applicable to credit cards to 20 percent per annum, on pre-arranged temporary overdrafts to 18 percent per annum, and on pawning facilities to 12 percent per annum. The Monetary Board was of the view that the above measures will dampen the possible build-up of underlying demand pressures in the economy, which would, in turn, help ease pressures in the the external sector, thus promoting greater macroeconomic stability.