Sri Lanka Hikes Rates 100bp as Iran War Drives Currency Collapse
🏦 COLOMBO — A war in the Gulf is now setting interest rates in the Indian Ocean. 📌 LOOK CLOSER: Sri Lanka imports nearly all its oil; Brent repricing hits the rupee before any domestic tool responds. A 100bp emergency hike is currency defense, not inflation management — Colombo is burning rate credibility rebuilt after its 2022 default. Bangladesh and Pakistan face identical exposure. The Gulf war's interest rate contagion is entering sovereign fragility territory.
