Sri Lanka jolts markets with outsized 100-bp rate hike to counter crisis in West Asia

Representative image. Photo: Getty Images/iStockphoto Sri Lanka’s central bank caught ​markets off-guard by raising its benchmark policy rate by an ‌outsized 100 basis points on Tuesday (May 26, 2026), as ​policymakers looked to stem inflation and sharp pressure ⁠on the currency from soaring energy prices. The Central Bank of Sri Lanka (CBSL) raised the overnight…

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