South Asian island nation Sri Lanka, previously Ceylon, is officially the Democratic Socialist Republic of Sri Lanka. It is southwest of the Bay of Bengal in the Indian Ocean, separated from the Indian peninsula by the Gulf of Mannar and Palk Strait.
In a statement, Sri Lanka’s central bank boosted interest rates unexpectedly on Friday to assist finalize an International Monetary Fund’s Extended Fund Facility (EFF) agreement.
The bank boosted its fixed deposit and loan facility rates by 100 basis points to 15.50% and 16.50%, respectively.
A $2.9 billion IMF rescue is pending.
The biggest financial crisis since independence from Britain in 1948 has pinched its economy, which contracted by 9.2% last year amid 50% inflation in February.
