By Hiran H.Senewiratne
‘Since local inflation has declined faster than expected, the CBSL Monetary Board has decided to reduce policy interest rates by 100 basis points to enable the economy to reach its true potential, CBSL Governor Dr. Nandalal Weerasinghe said at the monthly monetary policy review meeting held on November 24th at the Central Bank head office auditorium.
‘Moreover, as Sri Lanka has been making good progress in the IMF debt rescheduling effort up to now, it is very likely that that the second tranche in the IMF loan facility would be provided to the country in December or before the end of the year, the CBSL Governor added.
Dr. Weerasinghe said: “Policy interest rates are further reduced in view of the stable inflation outlook over the medium term and subdued demand pressures.
“Accordingly, the Monetary Policy Board of the Central Bank of Sri Lanka has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending…