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Sri Lanka’s 100-bp rate hike risks derailing fragile IMF-backed recovery
The Central Bank of Sri Lanka raised its overnight policy rate by 100 basis points to 8.75% in May 2026 — its sharpest tightening in three years — as Iran-conflict-driven fuel costs pushed headline inflation from 2.2% in March to 5.4% in April and drove the Sri Lankan rupee down…
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