Sri Lanka considered further reducing interest rates in the coming months, a minister said on Thursday.
State Minister of Finance Shehan Semasinghe told the parliament that the South Asian country’s economy is stabilizing and the interest rates will drop more.
Last week, the Monetary Board of the Central Bank of Sri Lanka (CBSL) decided to reduce the Standing Deposit Facility Rate and the Standing Lending Facility Rate by 250 basis points to 13.00 percent and 14.00 percent respectively.
Semasinghe said that inflation is dropping and the interest rates for treasury bonds have also dropped.
The downward adjustment in market interest rates will accelerate in line with the envisaged single-digit inflation, thereby supporting credit to the private sector and softening the pressures on the financial sector, the CBSL said in a statement.
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