<p style="text-align: justify;">The Central Bank this morning announced the tightening of the monetary policy by 100 basis points to contain rising inflation and the possible build-up of any inflation expectations.</p> <p style="text-align: justify;">Accordingly, the&nbsp;Standing Deposit Facility Rate will be increased to 14.50 percent while&nbsp;the&nbsp;Standing Lending Facility Rate to 15.50 percent. The Statutory Reserve Ratio will remain unchanged at 4 percent.</p> <p style="text-align: justify;">Meanwhile, the Central Bank said the economic activity in the country is expected to record notable downturn in the near term due to power cuts and shortage of fuel.</p><center><a href="https://www.hi.lk/himag" target="_blank"><img src="https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/advr_7fec3b236e.jpg" /></a></p></center> <p style="text-align: justify;">The Central Bank in April hiked the policy rate by mega 700 basis points to correct the direction of the interest rates and also to curb demand-side inflation pressures.</p></p>