Sri Lanka eases monetary policy, sets new single key rate

Central bank discards its rate corridor in favor of an overnight policy rate

20241127 SL central bank

Sri Lanka's central bank says its move will essentially shave 50 basis points off its policy rate, now set at 8%. © Reuters

COLOMBO (Reuters) -- Sri Lanka's central bank set a new single policy rate of 8% on Wednesday, aiming to catalyze the island nation's nascent recovery from a deep financial crisis.

Sri Lanka's central bank (CBSL) said late on Tuesday that it will implement a single policy interest rate mechanism by introducing an overnight policy rate instead of the existing rate corridor.

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