Sri Lanka's central bank cut its main lending rate Friday in a bid to revive the island's economy, which was battered by the Easter suicide bombings that killed 258 people.
The Central Bank of Sri Lanka said the rate at which it lent to commercial banks was reduced by 50 basis points to 8.5 per cent to encourage borrowing and mitigate fallout from the bombings which have scared off tourists.
Forty-five foreigners were among the dead from the April 21 suicide attacks against three Christian churches and three luxury hotels that also left nearly 500 people wounded.
"The Easter Sunday attacks have affected confidence and sentiments of economic agents, particularly disrupting tourism and related activities," the bank said.
"Although normalcy is gradually returning to economic activity, a lower than initially projected growth could be anticipated during 2019."
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