The Central Bank of Sri Lanka (CBSL) released its latest Market Operations Report (MOR) on 30 January 2026. The MOR aims to enhance stakeholder understanding of the monetary and foreign exchange operations undertaken by the CBSL in the pursuit of implementation of monetary policy under the Flexible Inflation Targeting (FIT) framework, supported by the flexible exchange rate regime.
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The Central Bank of Sri Lanka Publishes the Market Operations Report - December 2025
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CCPI based headline inflation accelerated in January 2026
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) accelerated in January 2026 after remaining at the same level for three consecutive months. Accordingly, headline inflation (Y-o-Y) was recorded at 2.3% in January 2026 compared to 2.1% in December 2025, broadly in line with the Central Bank’s near-term projections.
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External Sector Performance – December 2025
The current account recorded a marginal surplus in December 2025. Monthly current account surpluses were recorded in most months in 2025. As a result, the current account is estimated to have recorded a surplus of US$ 1.7 billion (provisional) in 2025.
The merchandise trade deficit widened on a year-on-year basis in December 2025. Further, the cumulative trade deficit widened to around US$ 7.9 billion in 2025 compared to 2024, despite export earnings recording a historically high level in 2025.
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Sri Lanka PMI - Construction increased in December 2025
The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, increased to 67.1 in December 2025. A majority of firms reported a notable expansion in construction activities during the reference period, despite initial operational disturbances caused by adverse weather conditions.
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IMF Staff Concludes Visit to Sri Lanka
At the end of the recent visit to Sri Lanka to assess impact of Cyclone Ditwah by the International Monetary Fund (IMF) staff team led by Mr. Evan Papageorgiou, the IMF issued the following press release on 28 January 2026.
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The Central Bank of Sri Lanka keeps the Overnight Policy Rate (OPR) unchanged
The Monetary Policy Board, at its meeting held yesterday, decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%. The Board arrived at this decision after carefully considering evolving developments and the outlook on the domestic front and global uncertainties. The Board is of the view that the current monetary policy stance will support steering inflation towards the target of 5%.
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SL Purchasing Managers’ Index (PMI) – December 2025
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in December 2025.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 60.9 in December 2025, indicating a continued expansion in manufacturing activities. All sub-indices contributed positively to this increase, mainly supported by seasonal demand, despite adverse weather-related disruptions experienced at the beginning of the month.
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Extension of the Suspension of Business of Perpetual Treasuries Limited
The Central Bank of Sri Lanka, acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a further period of six months with effect from 4.30 p.m. on 05th January 2026, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.
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Extension of the Term of the Administrator Appointed to Nation Lanka Finance PLC under the Banking (Special Provisions) Act, No. 17 of 2023
The Central Bank of Sri Lanka (CBSL) has extended the tenure of Mr. P W D N R Rodrigo, the Administrator appointed to Nation Lanka Finance PLC (NLFP), under the Banking (Special Provisions) Act, No. 17 of 2023 (BSPA).
Mr. Rodrigo, who was first appointed through the Order published in Gazette Extraordinary No. 2443/57 dated 04.07.2025, will continue in this role for a further period of six (06) months, from 04.01.2026 to 03.07.2026.
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CCPI based headline inflation remained unchanged in December 2025
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained unchanged at 2.1% in December 2025. This was primarily supported by the favourable statistical base effect, despite a substantial month-on-month increase in prices in December 2025 due to Cyclone Ditwah
Food inflation (Y-o-Y) remained unchanged at 3.0% in December 2025 compared to the previous month, whereas Non-Food inflation (Y-o-Y) accelerated to 1.8% in December 2025 from 1.7% recorded in November.