SRI Lanka’s central bank has decided to hike interest rates by an unprecedented 700 basis points to tame high inflation amid the worst economic crisis that has led to protests across the country and put President Gotabaya Rajapaksa under mounting pressure to resign. The move comes as Sri Lanka’s main Opposition party SJB on Friday announced that it will move a no-confidence motion against the Government of President Rajapaksa and is prepared to impeach the embattled leader if he fails to address the concerns of the public facing hardships due to the economic crisis.

 

The Monetary Board of the Central Bank of Sri Lanka on Friday decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 700 basis points to 13.50 per cent and 14.50 per cent, respectively, effective from the close of business on April 8.