The Central Bank of Sri Lanka (CBSL) has effectively reduced the Bank Rate by 500 basis points from 15.00 per cent to 10.00 per cent with effect from today.
The Bank Rate is an administratively determined rate that could be used in periods of emergency.
The CBSL said its Monetary Board has been observing the cumulative reduction of the key policy interest rates of the Central Bank, since its meeting held on 15 April 2020.
The Policy rates, namely the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR), were reduced by 200 basis points each since 31 May 2019, it said.
The CBSL said its Board then decided to allow the Bank Rate to automatically adjust in line with the SLFR, with a margin of +300 basis points. (Colombo Gazette)