Sri Lanka dollar bonds were trading higher on Thursday after the central bank reduced the key policy rates by 100 basis points (bps), doubling down on efforts to spur growth.

The Central Bank of Sri Lanka (CBSL) lowered the standing deposit facility rate and the standing lending facility rate to 10% and 11%, respectively, it said in a statement on Thursday.

Since June, the CBSL has reduced rates by a total of 550 bps to help an economy which is stabilising following a $2.9-billion rescue package from the IMF in March.

International bonds issued by the country rose by 0.17 cents to 0.47 cents, with June 2024 maturity bond leading the gains.

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)