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Monetary Policy Board further reduces policy interest rates by 1-pct

The Monetary Policy Board of the Central Bank of Sri Lanka, in its meeting on November 23, 2023, decided to decrease the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 100 basis points each to 9.00% and 10.00%, respectively. This decision, based on a thorough analysis of global and domestic economic conditions, aims to achieve and maintain a targeted inflation rate of 5% over the medium term while facilitating economic stabilization. Despite potential inflation risks in the short term due to supply-side factors, the Board believes they won't significantly alter the medium-term inflation outlook. The Board emphasizes the importance of financial institutions swiftly implementing the reduced policy interest rates to accelerate the normalization of market interest rates.