The Central Bank of Sri Lanka (CBSL) has  reduced with effect from today (16 April) the Bank Rate, which is an administratively determined rate that could be used in periods of emergency, by 500 basis points from 15.00 per cent to 10.00 per cent.

“The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 15 April 2020, having observed the cumulative reduction of the key policy interest rates of the Central Bank, namely the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR), by 200 basis points each since 31 May 2019, decided to allow the Bank Rate to automatically adjust in line with the SLFR, with a margin of +300 basis points,” CBSL said in a news release.

A bank rate is the interest rate at which a country’s  central bank lends money to domestic banks.