The Central Bank of Sri Lanka raised its benchmark standing lending facility rate by 100 basis points to 15.5% on Thursday. Six out of seven economists in a Bloomberg survey expected a hike ranging from 50 basis points to 300 basis points, while one expected a hold.
“Domestic economic activity during the second quarter of 2022 is expected to have been severely affected by the continued supply side disruptions, primarily due to the shortages of power and energy,” the central bank said. Authorities will hold roadshows starting next month in five Indian cities to attract travellers seeking “wellness, leisure, and Ramayana-trail,” tours, corporate functions and destination weddings, said Harin Fernando, the South Asian island’s tourism minister. Ramayana is the mythological life story of the Hindu god Ram.
The South Asian nation is banking heavily on multilateral institutions, including the International Monetary Fund, and friendly countries, for aid to tide over the crisis. Neighboring India, so far, has extended $3.5 billion of support in the last few months.