COLOMBO : Sri Lanka's central bank cut interest rates by 25 basis points on Wednesday in a surprise decision aimed at spurring economic recovery following the country's worst financial crisis in decades.
FILE PHOTO: A woman walks past the main entrance of the Sri Lanka's Central Bank in Colombo, Sri Lanka February 7, 2017. REUTERS/Dinuka Liyanawatte/File Photo
The Central Bank of Sri Lanka cut the Standing Deposit Facility Rate to 8.25 per cent and the Standing Lending Facility Rate to 9.25 per cent. Sri Lanka, which defaulted on its foreign debt in May 2022, is also making"good progress" on finalising a $12.5 billion debt restructuring with bondholders, he said.
Sri Lanka cut power tariffs by 22.5 per cent and reduced fuel and cooking gas prices this month to reduce living costs, which analysts said would also dovetail with CBSL's growth push. However, the rate cut is unlikely to propel growth beyond the projected 3 per cent, with markets likely to keep a close eye on Sri Lanka's upcoming presidential elections, likely before mid-October.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sri Lanka cuts rates by 25 basis points to foster growthCOLOMBO : Sri Lanka's central bank cut interest rates by 25 basis points in a surprise decision on Wednesday to support economic growth and propel the South Asian nation out of its worst financial crisis in decades. The Central Bank of Sri Lanka (CBSL) reduced the Standing Deposit Facility Rate to 8.
Read more »
Sri Lanka signs debt deal with creditor nations in ParisCOLOMBO: Sri Lanka signed a deal with creditor nations to restructure about US$5.8 billion in bilateral debt, the office of the country's president said on Wednesday (Jun 26), in a move that would help stabili
Read more »
As Sri Lanka finds its economic footing, it seeks growth and foreign investment: Foreign ministerSri Lanka also has to invest money into areas that can sustain the economy such as renewable energy and making the country a maritime and air traffic hub, Mr Ali Sabry said.
Read more »
Sri Lanka pilgrims flee as elephant runs amokCOLOMBO, Sri Lanka: A Hindu religious festival in Sri Lanka ended in chaos after an elephant in the procession panicked, with 13 people in the crowd injured as they fled, police said on Sunday
Read more »
Sri Lanka pilgrims flee as elephant runs amokThirteen people were taken to hospital and treated for minor injuries.
Read more »
Sri Lanka received debt restructuring deals due to creditors’ confidence in its recovery: MinisterSri Lanka on Wednesday (Jun 26) finalised a deal to restructure US$5.8 billion of debt owed to a group of creditor nations. It also signed an agreement with China’s Export-Import Bank to restructure more than US$4 billion worth of debt, helping to meet a key condition for an International Monetary Fund bailout.
Read more »