Economics
Sri Lanka Cuts Key Rate to Spur Growth After Terror Attacks
- Central bank lowers standing lending rate to 8.5% from 9%
- Inflation within central bank target left room to ease policy
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Sri Lanka’s central bank cut its benchmark interest rate for the first time in more than a year to support the economy after the Easter Sunday terror attacks clouded the growth outlook.
Governor Indrajit Coomaraswamy lowered the standing lending facility rate to 8.5% from 9%, the Central Bank of Sri Lanka said in a statement in Colombo on Friday. Six of the seven economists surveyed by Bloomberg predicted a cut, ranging from 25 basis points to 50 basis points.