Sri Lanka, May 22 -- The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has decided to reduce the Overnight Policy Rate (OPR) by 25 bps to 7.75% at its meeting held on Wednesday (21), thereby easing monetary policy further.

The Board arrived at this decision after carefully considering the developments both domestically and globally, the CBSL said in a statement.

The CBSL noted that the Board is of the view that this measured easing of monetary policy stance will support steering inflation towards the target of 5%, amidst global uncertainties and current subdued inflationary pressures.

Deflationary conditions have begun to ease since March 2025, as predicted, it added, highlighting that the latest projections show signs ...