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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
Updated on

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.