Sri Lanka Interest Rate

The Central Bank of Sri Lanka kept its benchmark interest rate unchanged at 7.75% at its November 2025 meeting, stating that the current stance remains appropriate for guiding inflation toward the 5% target. Headline inflation continued to accelerate in October and is expected to rise gradually before easing toward the target by the second half of 2026. Core inflation is also projected to increase modestly as demand strengthens, while medium-term expectations stay anchored. Economic indicators point to sustained growth momentum, supported by a broad-based expansion in private-sector credit amid a low-interest-rate environment and revived demand, including for vehicle imports. Imports have increased in recent months, widening the trade deficit, but robust tourism and workers’ remittances have helped cushion external pressures. The Central Bank reaffirmed its readiness to adjust policy if risks emerge.