Sri Lanka Interest Rate

The Central Bank of Sri Lanka kept its benchmark interest rate unchanged at 7.75% during its July 2025 meeting, aiming to steer inflation toward the 5% target while supporting the ongoing economic recovery. The central bank also held the Standing Lending Facility Rate at 8.25%, while the Standing Deposit Facility Rate remains at 7.25%. The decision followed signs of easing deflation, with inflation projected to turn positive in Q3 and gradually approach the target. Core inflation is expected to pick up as demand conditions improve. On the GDP front, the economy expanded by 4.8% in Q1-2025, and indicators suggest this growth momentum will persist. Credit to the private sector remained strong and broad-based, supported by declining market rates. On the external front, Sri Lanka's trade deficit widened, but tourism and remittance inflows remained robust. The next policy review is scheduled for September 24, 2025.