### 📈 CBSL Holds Policy Rates Steady in First 2026 Review

The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) opted to maintain the Overnight Policy Rate (OPR) at 7.75% following its latest meeting. The decision reflects a cautious approach amid global uncertainties and domestic recovery efforts. • Key Policy Rates Overnight Policy Rate (OPR): Unchanged at 7.75% SDFR / SLFR: Implicitly maintained at 7.25% and 8.25% (linked to OPR) Inflation Target: Anchored at 5.0% to ensure medium-term price stability • Economic Rationale The current stance is deemed sufficient to manage inflation expectations, which remained at a low 2.1% in late 2025. The Board is balancing domestic growth—impacted by recent infrastructure damage from Cyclone Ditwah—against the need for consistent macroeconomic stability. Credit to the private sector continues to show broad-based expansion, supported by the existing low-interest-rate environment. • Outlook & Context This hold comes as an IMF delegation concludes its review for the sixth tranche of the US$ 2.9 Bn Extended Fund Facility. The CBSL projects economic growth to remain resilient at 4%–5% for 2026, driven by reconstruction activities and recovering tourism and remittances.