ECONOMYNEXT – Sri Lanka’s interest rates have edged up over 2025, reducing the risk of a second sovereign default, data show, though reserve collections fell short of initial projections amid insufficient deflationary policy, analysts have said. Sri Lanka cut rates in May 2025 amid warnings that the operating framework of the central bank was moving on well-beaten paths of ‘flexible inflation targeting’ where currency crises were triggered in the second year of International Monetary Fund programs when private credit recovered after rate cuts two years earlier triggered the program itself. The prime lending rate, published by the central bank was…
Sri Lanka interest rates rise over 2025 reducing default risks
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