Sri Lanka’s interest rates have risen in October as banks increased deposit collection amid strong loan demand, despite earlier rate cuts and controversial liquidity injections by the central bank. Analysts warn that recent monetary practices risk repeating past currency crises, especially as the rupee weakened again in 2025. The post-Cyclone Ditwah recovery adds uncertainty, with the government planning major spending and expecting IMF and World Bank support.

Sri Lanka’s Kandy district has been hit by severe landslides triggered by continuous heavy rainfall, leaving several areas buried under earth and debris. Rescue teams are still searching for missing residents as unstable, rain-soaked slopes pose a high risk of additional collapses. Authorities warn that worsening weather conditions could further complicate relief efforts across the central province.

Nation on Alert: Cyclone Ditwah Leaves Trail of Destruction Across Sri Lanka