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

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 of the IMF bailout being approved within this month.

Despite the increase in rates, the central bank expects market rates will continue to reduce, while on the currency front the country will gradually move towards a market-driven exchange rate regime, Weerasinghe added.

Pak expects $1.3 bn from China’s ICBC

Pakistan will receive $1.3 billion in financing from the Industrial and Commercial Bank of China (ICBC) in coming days to help shore up its foreign exchange reserves, Finance Minister Ishaq Dar said on Friday. The money, which he said will come in three phases, is crucial for its economy, which is facing crisis.

                                                                                                                       
- Reuters