Sri Lanka central bank seen keeping rates steady

Sri Lanka's central bank is expected to keep its policy interest rates unchanged at record lows on Friday, a Reuters poll found. Nine out of 11 analysts surveyed said they expect the central bank to leave the standing deposit facility rate (SDFR) at 6.00 percent and the standing lending facility rate (SLFR) to remain at 7.50 percent. All 11 analysts polled expected the statutory reserve ratio (SRR) for commercial banks to remain at 6.00 percent.
One analyst expected the central bank to raise the standing deposit facility and standing lending facility rates, given heavy government borrowing and a rise in the market interest rates. Another analyst expected the central bank to cut the deposit and lending facility rates by 50 basis points, though they predicted the central bank will keep the reserve rate steady.