COLOMBO (Reuters) – Sri Lanka’s central financial institution raised rates of interest in an sudden transfer on Friday, to assist finalise an Worldwide Financial Fund’s Prolonged Fund Facility (EFF) association, it mentioned in an announcement.

The financial institution raised its standing deposit facility price and standing lending facility price by 100 foundation factors every to fifteen.50% and 16.50%, respectively.

The nation is awaiting approval of a $2.9 billion IMF bailout package deal.

Its financial system has been squeezed by its worst monetary disaster since independence from Britain in 1948, with development contracting by an estimated 9.2% final 12 months amid hovering inflation that hit 50% in February.