Sri Lanka central bank leaves key policy rates unchanged, as expected

[COLOMBO] Sri Lanka's central bank left its key interest rates unchanged on Friday, as widely expected, two days after the new government announced major tax cuts to boost economic growth that has fallen to a near two-decade low.

It kept the standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) steady at 7.00 per cent and 8.00 per cent, respectively. A Reuters poll had expected the Central Bank of Sri Lanka to keep both rates steady.

The central bank has cut rates by 100 basis points in two meetings since May to bolster the economy after the deadly Easter Day bomb attacks by Islamist militants.

REUTERS