FX.co ★ Sri Lanka Hikes Policy Rate to 8.75% as Month‑on‑Month Pressures Build

Sri Lanka has raised its key interest rate from 7.75% to 8.75%, according to data updated on 26 May 2026, marking a full percentage point increase on a month-over-month basis. The move reflects a notable tightening in monetary conditions compared with the previous month, when the benchmark stood unchanged at 7.75%.

The month-over-month comparison framework indicates that the “actual” figure captures the shift from the current month to the previous one, while the “previous” figure tracked the change from that earlier month to its predecessor. Against this backdrop, the latest step to 8.75% underscores a clear upward turn in Sri Lanka’s interest rate path after a period at 7.75%, signaling a more restrictive stance aimed at addressing emerging economic pressures.