Sri Lanka raises rates to rein in imports, curb inflation

The Central Bank of Sri Lanka (CBSL) raised the standing deposit facility rate (SDFR) and the standing lending facility rate (SLFR) by 50 basis points (bps) each to 5.5% and 6.5%, respectively.

COLOMBO: The Sri Lankan central bank raised interest rates yesterday, as expected, shifting its focus away from growth and back to controlling inflation in a bid to curb soaring imports and attract more foreign capital.

The island nation has reiterated its commitment to repaying the entire US$4bil (RM16.74bil) owed to investors in the rest of 2022 but in the absence of incoming dollars some analysts believe the country could face its first-ever default.