May 26, Colombo (LNW): The Central Bank of Sri Lanka has announced a sharp increase in its Overnight Policy Rate, lifting it by 100 basis points to 8.75 per cent after the latest meeting of its Monetary Policy Board held on Monday.
Officials stated that the move was taken after an extensive review of both local and international economic developments, with policymakers weighing mounting financial pressures and broader market trends.
The decision is expected to influence borrowing costs across the banking sector while signalling the Central Bank’s continued focus on maintaining monetary stability.
The CBSL further noted that evolving global conditions, including external economic risks and inflationary concerns, were among the factors considered during deliberations before reaching the latest policy decision.
