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Lower than projected inflation and expectation of lower external demand, seen as chief factors in policy rate cut
May 25, 2025
|The Island
Sri Lanka has cut policy interest rates by 25 basis points due to lower than projected inflation and expected lower external demand stemming from geopolitical uncertainties, Central Bank Governor Dr. Nandalal Weerasinghe said.
"The Central Bank has lowered its lending window rate to 8.25 percent and the enforceable deposit facility to 7.25 percent, Dr Weerasinghe told the Central Bank monthly policy review meeting held at Central Bank head office in Colombo last Thursday.
Dr. Weerasinghe added: “Inflation is moving at a lower path than we projected in the last review.0”
“The projection is moving below the lower path but reaching towards the target range of 5 percent.
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