Sri Lanka’s central financial institution raises rates to contain record higher inflation

Sri Lanka's central financial institution raises rates to contain record higher inflation

COLOMBO: The Central Bank of Sri Lanka (CBSL) raised its key rates by a full portion point on Thursday night (Jul 7) in order to tackle record higher domestic inflation and also to contain any build-up of adverse pumpiing expectations.

The Standing Financing Facility rate was raised to 15. 5 per cent while the Position Deposit Facility Rate rose to fourteen. 5 per cent.

“The Board has been of the view this policy adjustment might help guide inflation targets to be anchored throughout the targeted level of topic inflation over the medium term, while limiting any build-up of underlying demand challenges in the economy, ” CBSL said in its declaration.

The tropical isle of 22 mil people is wilting under a severe foreign exchange shortage that has this struggling to pay for essential imports of fuel, fertilisers, food and medication.

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