The Central Bank of Sri Lanka raised its key interest rates by 50 bps to 5.5% during its January meeting, citing growing inflationary pressures. Annual inflation in the country hit its highest in 13 months at 12.1% in December amid a record rise in prices of food products. The central bank had been the first central bank in Asia to tighten policy in the pandemic era by raising rates 50 bps in August 2021 and then holding them in October and November. The board expects a corresponding rise in interest rates, particularly in deposit rates, encouraging savings while discouraging consumption, which fuels imports. Policymakers noted the economy is expected to record a gradual recovery by recording a growth of around 4% in 2021, as activity returns to normalcy on the back of the successful vaccination drive while external sectors stayed resilient. Meantime, credit flows to the private sector continued to rise while the growth of broad money remained elevated by the end of November. source: Central Bank of Sri Lanka

Interest Rate in Sri Lanka averaged 7.52 percent from 2003 until 2022, reaching an all time high of 10.50 percent in February of 2007 and a record low of 4.50 percent in July of 2020. This page provides - Sri Lanka Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Sri Lanka Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on January of 2022.

Interest Rate in Sri Lanka is expected to be 5.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Sri Lanka Interest Rate is projected to trend around 5.50 percent in 2023, according to our econometric models.

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Sri Lanka Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-10-14 02:00 AM 5.0% 5.0% 5.5%
2021-11-25 02:00 AM 5.0% 5.0% 5.25% 5.5%
2022-01-20 02:00 AM 5.5% 5.0% 5%
2022-03-08 02:00 AM 5.5%
2022-04-07 02:00 AM
2022-05-19 02:00 AM


Related Last Previous Unit Reference
Interest Rate 5.50 5.00 percent Jan/22
Interbank Rate 6.96 6.96 percent Jan/22
Money Supply M1 1372671.00 1318748.00 LKR Million Oct/21
Money Supply M0 942804.10 950083.40 LKR Million Jul/21
Money Supply M2 9535950.00 9448987.00 LKR Million Oct/21
Foreign Exchange Reserves 3100.00 1600.00 USD Million Dec/21
Banks Balance Sheet 12923184.10 12722604.30 LKR Million Jul/21
Deposit Interest Rate 4.50 5.50 percent Jul/20
Cash Reserve Ratio 4.00 4.00 percent Jan/22
Lending Rate 6.00 6.00 percent Dec/21
Central Bank Balance Sheet 2324344.10 2281216.70 LKR Million Jul/21

News Stream
Sri Lanka Hikes Key Rate by 50 Bps to 5.5%
The Central Bank of Sri Lanka raised its key interest rates by 50 bps to 5.5% during its January meeting, citing growing inflationary pressures. Annual inflation in the country hit its highest in 13 months at 12.1% in December amid a record rise in prices of food products. The central bank had been the first central bank in Asia to tighten policy in the pandemic era by raising rates 50 bps in August 2021 and then holding them in October and November. The board expects a corresponding rise in interest rates, particularly in deposit rates, encouraging savings while discouraging consumption, which fuels imports. Policymakers noted the economy is expected to record a gradual recovery by recording a growth of around 4% in 2021, as activity returns to normalcy on the back of the successful vaccination drive while external sectors stayed resilient. Meantime, credit flows to the private sector continued to rise while the growth of broad money remained elevated by the end of November.
2022-01-20
Sri Lanka Holds Key Rate at 5%, Says Inflation Transitory
The Central Bank of Sri Lanka kept its benchmark interest rates unchanged at 5.0% during its November 2021 meeting, saying the current policy rates are appropriate to support the country's economic recovery. Policymakers mentioned that 2021 real GDP growth was projected at around 5 %, buoyed by the removal of COVID-19 lockdown measures, the successful nationwide vaccine rollout, strong exports, and the revival of tourism. On prices, a further acceleration of headline inflation is possible in the immediate future, due to supply disruptions and a surge in commodity prices; but such movements are expected to be transitory. That said, the board reaffirmed that it stands ready to take measures as needed to maintain inflation in the desired range in the medium term. Sri Lanka’s annual inflation rose to a near 4-year high of 7.6% in October from 5.7% a month earlier. The central bank also left Standing Lending Facility Rate (SLFR) at 6% and the Statutory Reserve Ratio (SRR) at 4.0%.
2021-11-25
Sri Lanka Holds Rates
The Central Bank of Sri Lanka kept its benchmark interest rates unchanged at 5.0 percent during its October meeting after raising them by 50 basis points in August as policymakers sought to mitigate inflationary pressures in the country. While saying the current level of interest rates is appropriate to support the economic recovery, the board vowed it stands ready to take measures as needed to maintain inflation in the desired range in the medium term. The committee reiterated it will continue to monitor domestic and global financial markets as they continue to recover from the pandemic despite large disparities across countries. In Srilanka, the economy is expected to grow by 5% this year and expand at a high and sustained growth trajectory over the longer term, helped by progress in the COVID-19 vaccination drive and supportive policy measures. The central bank also left Standing Lending Facility Rate (SLFR) at 6% and the Statutory Reserve Ratio (SRR) at 4.0 percent.
2021-10-14

Sri Lanka Interest Rate
In Sri Lanka, interest rates decisions are taken by The Central Bank of Sri Lanka. The official interest rates are the Standing Deposit Facility (SDF) Rate and the Standing Lending Facility (SDFR) Rate.