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Sri Lanka Vows Independent Monetary Policy After Record Hike

  • Lending rate increased to 14.5% from 7.5% before IMF talks
  • Governor says bond repayments depend upon debt restructure
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Sri Lanka’s central bank raised borrowing costs by an unprecedented 700 basis points amid economic and political turmoil that has sparked street protests and left President Gotabaya Rajapaksa with a minority in parliament.

The Central Bank of Sri Lanka increased the standing lending facility rate to 14.5% from 7.5%, it said in a statement Friday. That’s way above the median estimate of 8.5% in a Bloomberg survey of economists.