Sri Lanka keeps on cutting

The Central Bank of Sri Lanka slashed its policy rate by 175 basis points to 14.75% on Wednesday in an effort to encourage lending and revive economic activity.

The central bank expected the cut to encourage financial intermediaries to expand their lending portfolio and enhance the flow of credit to the economy at lower rates. "This would promote domestic demand and support economic activity," the central bank said.

It is the third straight cut by the central bank, following a 200-basis-point