The Central Bank of Sri Lanka’s (CBSL) monetary board cut both its policy rates by 50 basis points in its first meeting under its newly-appointed governor on January 30.

The board, chaired by governor WD Lakshman, announced it was cutting the standing deposit facility rate to 6.5% and the standing lending facility rate to 7.5%. The move came despite official data showing that Sri Lanka’s year-on-year inflation has been trending up in recent months.

In a statement, the board said the decision