By Saman Indrajith
The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL), during its meeting on 26 September 2024, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at 8.25 percent and 9.25 percent, respectively, according to a CBSL press release issued on Friday (27).
The decision was based on a thorough analysis of macroeconomic conditions, as well as an evaluation of both domestic and global risks and uncertainties, the CBSL stated.
The Central Bank’s primary objective remains to stabilise inflation at 5 percent in the medium term while ensuring the economy operates at its full potential.
The Board noted that inflation is projected to remain well below the 5 percent target in the coming quarters, with the possibility of deflation in the near term due to adjustments in administratively controlled prices and improved supply conditions.
The CBSL also reported that, despite occasional volatility, the Sri Lankan rupee had appreciated by over 7 percent against the US dollar so far in 2024. The Central Bank made significant foreign exchange purchases from the domestic market to bolster Gross Official Reserves (GOR).
As of the end of August 2024, GOR stood at USD 6.0 billion, including a swap facility from the People’s Bank of China, the release stated.
