The Monetary Policy Board of the Central Bank of Sri Lanka has announced a reduction in the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25 basis points each, bringing them to 8.25 percent and 9.25 percent, respectively. This decision was made during the Board's meeting on July 23, 2024.

The reduction follows a thorough evaluation of current and anticipated macroeconomic conditions, including potential risks and uncertainties on both domestic and global fronts. The central bank aims to maintain inflation at a targeted 5 percent over the medium term while supporting the economy's growth to its full capacity.

The Board highlighted the importance of signaling a continuation of the eased monetary policy stance to encourage further reductions in market lending rates, thus fostering economic activity amidst a benign inflation outlook.