Sri Lanka’s central bank chief says to reduce interest rates in 2023

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Colombo, Jan 2 (IANS) Steps will be taken in 2023 to reduce key interest rates in Sri Lanka, said Governor of Central Bank of Sri Lanka, Nandalal Weerasinghe.

Weerasinghe told media on Sunday that inflation is also expected to fall in 2023.

He said that Sri Lanka’s inflation rate eased to 57.2 per cent in December from 61 per cent in November, noting that this reflected that the policies they have taken from April 2022 were successful, Xinhua news agency reported.

High interest rates have kept inflation down but the rates will be reduced as the economy stabilises, he said.

Sri Lanka’s central bank in November 2022 decided to maintain the Standing Deposit Facility Rate and the Standing Lending Facility Rate at the levels of 14.50 per cent and 15.50 per cent, respectively.

–IANS

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