Central banks adjust interest rates to manage inflation in Sri Lanka and Sierra Leone

Several South Asian and African nations are adjusting monetary policies to manage inflation and economic growth.

The Central Bank of Sri Lanka has maintained its Overnight Policy Rate at 8.75 percent. This decision follows a period of proactive tightening and aims to balance economic recovery with rising headline inflation, which reached 8 percent in August 2026. The bank cited geopolitical tensions in the Middle East and energy price shocks as key external pressures.

In Sierra Leone, the Bank of Sierra Leone raised its Monetary Policy Rate by 0.25 percentage points to 17.25 percent. This move responds to headline inflation climbing to 15.66 percent in August 2026, driven by tax policies, high food costs, and global energy prices. The bank also adjusted its Standing Lending and Deposit Facility rates.

In Bangladesh, remittance inflows slowed to $2.77 billion in September, the lowest monthly amount in 11 months, though the first quarter of the fiscal year saw a 13.3 percent growth. Additionally, Bangladesh Bank has removed the minimum 1 percent merchant discount rate on Bangla QR payments to encourage digital transaction growth, following a significant surge in daily transaction volumes.