The Central Bank of Sri Lanka left its benchmark standing deposit facility rate steady at 8 percent on February 22nd 2019, saying economic growth is expected to be modest this year and inflation is likely to remain in the desired 4-6 percent range in 2019 and beyond. The standing lending facility rate was also left at 9 percent. However, the central bank cut the statutory reserve ratio applicable to commercial banks by 100bps to 5 percent, effective from March 1st, mentioning a persistent deficit liquidity in the domestic market. Interest Rate in Sri Lanka averaged 7.83 percent from 2003 until 2019, reaching an all time high of 10.50 percent in February of 2007 and a record low of 6 percent in April of 2015.
Interest Rate in Sri Lanka is expected to be 8.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Sri Lanka to stand at 8.50 in 12 months time. In the long-term, the Sri Lanka Interest Rate is projected to trend around 7.00 percent in 2020, according to our econometric models.