Sri Lanka’s central bank has reduced the statutory reserve requirement for commercial banks by 200 bps to 2%, releasing 200 bln rupees (USD 2.4 bln) into the domestic money market. That aims to lower lending rates and aligns with the bank’s previous easing measures, as they reduced rates by 450 bps in two meetings. The rupee remains stable, seeing a 0.4% increase this month after a 5% drop in July.