Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in October 2025.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded a value of 61.0 in October 2025, reflecting an increase in manufacturing activities. This increase was broad-based, with all sub-indices contributing positively to this expansion.
Having recognized the need for strengthening the regulation and supervision of Finance Companies (FCs), investigation and prosecution of unauthorized finance business, resolution and winding up of non-viable FCs, the Central Bank of Sri Lanka (CBSL) has proposed amendments to FBA.
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) accelerated further in October 2025 indicating a continued convergence towards the inflation target. Accordingly, headline inflation (Y-o-Y) increased to 2.1% in October 2025 from 1.5% in September 2025, in line with the Central Bank’s near-term projections.
The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, reached 67.6 in September 2025, recording the strongest increase in activity observed since late 2021. The respondents highlighted that the persistent availability of project opportunities has provided a steady underpinning for growth in the construction sector.
Sri Lanka’s external sector recorded a monthly current account deficit in September 2025, following consecutive monthly current account surpluses registered during January-August 2025. However, cumulative current account surplus for the first nine months is estimated at USD 1.9 billion.
The merchandise trade deficit recorded a year-on-year expansion in September 2025, as import expenditure exceeded USD 2 billion, primarily driven by a surge in vehicle imports.
In terms of the provisions in the Central Bank of Sri Lanka Act, No. 16 of 2023, Hon. Minister of Finance, as recommended by the Governing Board, has appointed Dr. C Amarasekara, Assistant Governor, and Mr. K G P Sirikumara, Assistant Governor, as Deputy Governors of the Central Bank of Sri Lanka with effect from 24.10.2025 and 03.11.2025, respectively.
The Sri Lankan delegation, led by Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), actively participated in a series of high-level bilateral and multilateral meetings during the 2025 World Bank Group/ International Monetary Fund (IMF) Annual Meetings in Washington, D.C., during October 13–18, 2025.
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in September 2025.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.4 in September 2025, indicating an expansion in manufacturing activities. All sub-indices, except for Employment, remained above the neutral threshold during the month.
His Excellency the President of the Democratic Socialist Republic of Sri Lanka has appointed Mr. Maithri Evan Wickremesinghe, P.C. as a member of the Governing Board (GB) of the Central Bank of Sri Lanka (CBSL) with effect from 02.10.2025. In terms of the provisions of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBSL Act), GB has been established as the body responsible for overseeing the administration and management of the affairs of CBSL and determination of the general policies of CBSL. Further, in terms of Section 12 (1) (b) of the CBSL Act, the members of GB will be members of the Monetary Policy Board, as well.
An International Monetary Fund (IMF) team led by Mr. Evan Papageorgiou, visited Colombo from 24 September to 09 October 2025, for the Fifth Review under Sri Lanka’s Extended Fund Facility Arrangement. Upon reaching the staff-level agreement on the Fifth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility, the IMF issued the following press release on 09 October 2025, which can be accessed from the link below.
