Sri Lanka Cuts Key Interest Rate to 7.75% as Deflation Eases

Sri Lanka’s central bank on Thursday cut its key interest rate by 25 basis points to 7.75 percent, aiming to support economic recovery and bring inflation closer to its 5 percent target.

The Central Bank said the move followed a review of both local and global economic conditions.

“Deflationary pressures have started to ease since March, as expected,” the bank said in a statement.

Inflation remains low, and the bank said the rate cut would help maintain price stability while supporting growth.