Sri Lanka Introduces Single Overnight Policy Rate at 8% to Support Economic Recovery

|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------| | Why in News | CBSL introduced a new Overnight Policy Rate (OPR) of 8%, replacing the dual-rate system (SDFR and SLFR). | | New Policy Rate (OPR) | 8% | | Previous Rates | SDFR: 8.5%, SLFR: 9% | | Effective Rate Cut | 50 basis points compared to the Average Weighted Call Money Rate (AWCMR) | | Inflation Target | 5% under the Flexible Inflation Targeting framework | | IMF Assistance | $2.9 billion package secured in March 2023 to address the financial crisis | | Debt Restructuring | $12.55 billion bond swap initiated; bondholders to vote by December 12 | | Economic Growth Forecast | 4.4% in 2024 (World Bank estimate) | | Country Information | Capital: Sri Jayawardenepura Kotte, Currency: Sri Lankan Rupee (LKR), President: Ranil Wickremesinghe |