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The Central Bank of Sri Lanka Reduces its Policy Interest Rates

The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 22 August 2019, decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points to 7.00 per cent and 8.00 per cent, respectively. The Board arrived at this decision following a careful analysis of current and expected developments in the domestic economy and the financial market as well as the global economy, with the aim of further supporting the revival of economic activity in the context of low inflation prevailing at present and the medium term inflation outlook, which is well anchored in the desired 4-6 per cent range. 

Inflation in July 2019

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100)  increased marginally to 2.2 per cent in July 2019 from 2.1 per cent in June 2019 due to the monthly increases of prices of items in both Food and Non-food categories. Meanwhile, in July 2019, year-on-year Food and Non-food inflation recorded -2.5 per cent and 6.1 per cent respectively. 

President confers the “Deshamanya” title on Dr. Indrajit Coomaraswamy, Governor of the Central Bank of Sri Lanka

On 19th August 2019, President Maithripala Sirisena conferred “National Honours” on distinguished personalities for the outstanding and invaluable service rendered by them to the Motherland.

Dr. Indrajit Coomaraswamy, Governor of the Central Bank of Sri Lanka along with five other distinguished personalities were conferred the title of “Deshamanya” by the President.

“Deshamanya” is the second-highest national honour awarded by the Government of Sri Lanka as a civil honour. It is awarded in recognition of the exceptional and highly meritorious service to the nation.

External Sector Performance - June 2019

Sri Lanka’s external sector strengthened further in June 2019 with a marked contraction in the trade deficit while gross official reserves were augmented with the proceeds of the issuances of two international sovereign bonds (ISBs).

In June 2019, the trade deficit narrowed to US dollars 316 million, the lowest since October 2010.