T-Bill auction rates continue to hold broadly steady for 19th straight week

Secondary Bond market yields edge up Rupee depreciates 6th and final Monetary Policy announcement records 'No Change' decision

- BY WEALTH TRUST SECURITIES

AT the sixth Monetary Policy Review for 2025 announced yesterday, the Central Bank of Sri Lanka (CBSL) decided to hold the Overnight Policy Rate at 7.75%. This marked the third consecutive monetary policy decision to keep rates on hold. The Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR), which are linked to OPR with predetermined margins of 50 basis points, also remained unchanged at 7.25% and 8.25%, respectively. The statutory reserve rate was left unchanged at 2%.

The official press release stated the Board arrived at this decision after carefully considering evolving developments and the outlook on both domestic and global fronts. The Board is of the view that the current monetary policy stance will support steering inflation towards the target of 5%. The press release also noted the following: “Credit to the private sector has recorded a notable and broad-based expansion thus far in 2025, supported by the low-interest rate environment.

Imports have risen in recent months, contributing to a widening trade deficit. However, strong inflows from tourism and workers' remittances have cushioned the impact on the external current account.

Gross Official Reserves were maintained above $ 6 billion thus far in 2025, supported by net foreign exchange purchases by the Central Bank. Expected additional inflows in December 2025 include receipts from the multilateral organisations.”