Lanka's central bank raises interest rates in anticipation of IMF bailout

Central bank Governor P Nandalal Weerasinghe said with the rate increase all "prior actions" have been fulfilled and he was hopeful of the IMF bailout being approved within this month

Sri Lanka’s central bank raised interest rates in an unexpected move on Friday in a bid to help the country secure a bailout package from the International Monetary Fund (IMF) to stabilise its crisis-hit economy.

The bank raised its standing deposit facility rate and standing lending facility rate by 100 basis points each to 15.50 per cent and 16.50 per cent, respectively, it said in a statement. The country is awaiting approval of a $2.9 billion IMF bailout package.

Central bank Governor P Nandalal Weerasinghe said with the rate increase all “prior actions” have been fulfilled and he was hopeful