The Monetary Board of the Central Bank of Sri Lanka has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points each.
The Central Bank of Sri Lanka (CBSL) said the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) were reduced to 4.50 per cent and 5.50 per cent, respectively.
The Board arrived at this decision at its meeting held yesterday (08) on its Monetary Policy Review for July 2020..
The decision was drawn with a view to inducing a further reduction in market lending rates, thereby encouraging the financial system to aggressively enhance lending to productive sectors of the economy, which would reinforce support to COVID-19 hit businesses as well as to the broader economy, given conditions of subdued inflation, the CBSL said. (Colombo Gazette)