Central Bank,SL holds rates amid U.S. Tariff talks
- By KirshCNL
- July 24, 2025
- Banking and Financial, News, Political
- Central Bank, SL, US tariffs
- 0 Comments
The Central Bank of Sri Lanka has kept its main interest rate steady at 7.75%, saying the current policy is right for the country’s recovering economy. However, the bank also said it might lower rates again later this year if inflation stays low.
Central Bank Governor Dr. Nandalal Weerasinghe said inflation is expected to rise slightly in the coming months and the bank aims to keep it around 5%. Inflation was at -0.6% in June, showing deflation, but this is expected to change soon.
The decision to keep the rate steady was expected by most experts, who pointed to stable inflation, steady growth, and uncertainty over U.S. trade policies.
The U.S. recently reduced planned tariffs on Sri Lankan goods from 44% to 30%, but these will still impact exports, especially the apparel industry. Sri Lanka has restarted talks with the U.S. to try to lower the tariffs further before they take effect on August 1.
The apparel sector, which earns $4.8 billion a year and employs around 300,000 people mostly women is at risk as 40% of its exports go to the U.S.
