(Bloomberg) -- Sri Lanka’s central bank raised borrowing costs for the first time in three meetings as policy makers sought to arrest price pressures in an economy pushed back into contraction territory by the pandemic.

The Central Bank of Sri Lanka increased the standing lending facility rate to 6.5% from 6%. Only two of seven economists surveyed by Bloomberg predicted the move, with two others seeing a hike of 25 basis points to 200 basis points and the rest expecting no change. 

The monetary authority also raised the standing deposit facility rate to 5.5% from 5%, while holding the statutory reserve ratio at 4%.

 

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