The Central Bank of Sri Lanka (CBSL) has introduced an Overnight Policy Rate (OPR), set at 8.00%, as part of its decision to further ease the monetary policy stance.

The effective reduction in the policy interest rate is approximately 50 basis points from the current Average Weighted Call Money Rate (AWCMR), which remains the target of the Flexible Inflation Targeting (FIT) framework.

The Monetary Policy Board reached this decision during its meeting on November 26, 2024, following an assessment of domestic and international economic conditions. This will ensure inflation moves toward the 5% target while supporting economic recovery.

Key factors influencing the move include deeper-than-expected deflation in the near term, reduced inflationary pressures, and positive external developments.

The Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) are now linked to the OPR with a ±50 basis point margin, making them 7.50% and 8.50%, respectively.
These changes take effect from today.