In an move to stimulate economic recovery, the Central Bank of Sri Lanka has announced a substantial reduction in key interest rates. The Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) have both been lowered by 100 basis points (bps) to 10% and 11%, respectively.

This decision, aimed at revitalizing the nation's economy, comes as part of ongoing efforts to mitigate the economic challenges posed by the COVID-19 pandemic and other external factors. By reducing interest rates, the Central Bank aims to encourage borrowing and investment while supporting the growth of businesses and individuals alike.

The financial sector has been strongly urged to swiftly and effectively pass on the benefits of these lowered interest rates to the general public and businesses. This action is seen as crucial in assisting the envisaged economic rebound, which is vital for Sri Lanka's overall recovery and stability.

The Central Bank's decision to reduce the SDFR and SLFR reflects a proactive approach to address economic challenges and foster a more conducive environment for investment and economic growth.