Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe speaks at a press conference in Colombo, Sri Lanka, Sept. 27, 2024. The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has opted to keep the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) unchanged at 8.25 percent and 9.25 percent respectively, a CBSL press release issued on Friday said. (Photo by Gayan Sameera/Xinhua)

The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has opted to keep the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) unchanged at 8.25 percent and 9.25 percent respectively, a CBSL press release issued on Friday said.

The decision was based on a comprehensive analysis of macroeconomic conditions, alongside an assessment of both domestic and global risks and uncertainties, the CBSL noted.

The primary objective remains to maintain inflation at 5 percent in the medium term while enabling the economy to function at its full capacity, the central bank said.

The board observed that inflation is expected to remain significantly below the 5 percent target in the coming quarters, with the possibility of deflation in the near term due to adjustments in administratively controlled prices and improved supply conditions.

The CBSL further reported that despite occasional volatility, the Sri Lankan rupee appreciated by over 7 percent against the U.S. dollar so far in 2024.

The central bank also made substantial foreign exchange purchases from the domestic market to strengthen gross official reserves, which stood at 6 billion U.S. dollars as of the end of August 2024.