Financial News: Sri Lanka Central Bank Hikes Rates By 100

Sri Lanka Central Bank Hikes Rates By 100 Bps

05/26/2026 - 02:24:00 (RTTNews)

(RTTNews) - Sri Lanka's central bank raised its benchmark interest rates by 100 basis points on Tuesday, as inflation is expected to remain above the target in the period ahead due to rising oil prices.

The Monetary Policy Board of the Central Bank of Sri Lanka decided to raise its overnight policy rate to 8.75 percent from 7.75 percent.

The previous change in the monetary policy was a quarter-point cut in May 2025.

The board expects inflation to remain above the 5 percent target in the period ahead, before slowing and stabilizing around it.

"In view of the elevated inflation forecast, the potential second-round effects on headline inflation from energy price adjustments, continued expansion in private sector credit fueling import demand, pressures on the external sector, as well as the risk of de-anchoring inflation expectations, the Board was of the view that a tightening of the monetary policy stance is appropriate at this juncture," the bank said in a statement.

Policymakers said the bank stands ready to take measures as appropriate to ensure that inflation stabilizes around the target, while helping the economy to achieve its potential over the medium-term.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Singapore Industrial Output Growth Accelerates In April (16 min(s), 19 sec(s) ago)
(RTTNews) - Singapore's industrial production expanded at the quickest pace in six months in A ...Full Story»

Japan Leading Index Rises Less Than Estimated (48 min(s), 19 sec(s) ago)
(RTTNews) - Japan's leading index improved less than expected in March to the highest level in ...Full Story»

UK Shop Price Inflation Rises: BRC (52 min(s), 19 sec(s) ago)
(RTTNews) - UK shop price inflation accelerated in May on rising non-food prices, the British Reta ...Full Story»

Sri Lanka Central Bank Hikes Rates By 100 Bps (01 hr(s), 15 min(s), 19 sec(s) ago)
(RTTNews) - Sri Lanka's central bank raised its benchmark interest rates by 100 basis points o ...Full Story»

Slovenia Manufacturing Confidence Rises In May (53 min(s), 41 sec(s) ago)
(RTTNews) - Slovenia's industrial sentiment remained less negative in May, figures from the St ...Full Story»

Poland Retail Sales Growth Eases In April (14 min(s), 41 sec(s) ago)
(RTTNews) - Poland's retail sales growth moderated in April after accelerating to the stronges ...Full Story»

Turkey Economic Confidence Rises In May (51 min(s), 41 sec(s) ago)
(RTTNews) - Turkey's economic confidence remained less pessimistic in May, survey results from ...Full Story»

Czech Economic Sentiment Falls To 10-month Low (01 min(s), 41 sec(s) ago)
(RTTNews) - The Czech economy's confidence weakened further in May to the lowest level in near ...Full Story»