In terms of Section 70(1) of the Central Bank of Sri Lanka Act, No. 16 of 2023, the Central Bank of Sri Lanka released its annual Financial Stability Review (FSR) for 2025. This statutory report provides an assessment of the stability of the financial system, identifies and evaluates the associated risks and vulnerabilities, and outlines the policy measures implemented by the Central Bank and other regulatory authorities. In addition, a summary report of the FSR 2025 is also published. The report generally covers data up to end June 2025. The electronic version of the publication can be accessed through the Central Bank website.

The Colombo Consumer Price Index (CCPI, 2021=100)1 based headline inflation (year-on-year, Y-o-Y), which returned to positive territory in August 2025, continued its upward trend toward the inflation target in September 2025. Accordingly, headline inflation (Y-o-Y) accelerated to 1.5% in September 2025 from 1.2% in August 2025, in line with the Central Bank’s near-term projections.