The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 23 August 2023, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 11.00 per cent and 12.00 per cent, respectively. The Board arrived at this decision following a careful analysis of current and expected developments in the domestic as well as the global economy, while noting the significant easing of monetary conditions effected since June 2023. The Monetary Board took note of the downward adjustment of market interest rates in response to monetary policy easing measures implemented thus far and the need to allow space for further adjustment of market interest rates swiftly. However, the Board observed that market interest rates of certain lending products remain excessive and are not in line with the current monetary policy stance. Moreover, the Board anticipates a faster reduction in overall market lending interest rates in line with the recent monetary policy easing measures.

Land Valuation Indicator (LVI) for Colombo District recorded 215.3 during the first half of 2023 with a year-on-year increase of 15.2 per cent. All sub-indicators of LVI, namely Residential, Commercial and Industrial LVIs contributed to the overall increase with annual increases of 17.2 per cent, 15.1 per cent and 13.5 per cent, respectively. On semi-annual basis, LVI increased by 4.9 percent during the first half of 2023, compared to the second half of 2022. The highest contribution to this increase was from Residential LVI followed by Commercial and Industrial LVIs. However, a deceleration of the semi-annual growth of LVI could be observed during the first half of 2023.