Sri Lanka's vaccination program bolsters economic sentiments: central bank

Thursday, 2021-03-04 14:48:04
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People receive COVID-19 vaccines at the National Infectious Disease Hospital on the outskirts of Colombo, Sri Lanka, Feb. 20, 2021. (Photo: Xinhua)
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The Central Bank of Sri Lanka (CBSL) on Thursday said that the country's vaccination program has bolstered economic sentiments, paving the way for an economic revival in 2021.

"Positive sentiments fuelled by the COVID-19 vaccination drive in the country and the impact of growth-promoting policies are expected to support the economic revival over the short to medium term," the CBSL said in a statement.

Meanwhile, the CBSL said that the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) would remain at 4.5 percent and 5.5 percent respectively, following a review by the Monetary Board.

"The Board noted the recent slowdown in credit disbursements to the private sector and inadequate lending to productive sectors of the economy, and stressed the need for the financial system to actively lend to productive sectors in order to support the ongoing recovery of domestic production-based economic activity," a statement by the CBSL said.