• Appointment of New Deputy Governors

    The Monetary Board, with the concurrence of the Hon. Minister of Finance, has promoted Assistant Governors, Mr. S R Attygalle and Mr. H A Karunaratne to the post of Deputy Governor of the Central Bank of Sri Lanka (CBSL) with effect from 31st October 2018.

  • Erroneous News Articles on Money Printing

    The attention of the Central Bank of Sri Lanka (CBSL) has been drawn to recent newspaper articles on increased money printing by the CBSL in the past few days. The CBSL wishes to provide the following clarification as the concepts and facts in such articles remain grossly inaccurate and misleading:

    These articles suggest that the CBSL has printed a large amount of money recently to help finance the government’s fiscal commitments. Usually, money printing refers to the expansion of Reserve Money (Monetary Base). Reserve Money, which was at Rs. 939.8 billion at end 2017 and at Rs. 1,010.5 billion at end September 2018, was recorded at Rs. 1,020.8 billion on 2 November 2018. This is a year-on-year growth in Reserve Money of 11.6 per cent, which is well within the CBSL projections for the year.

  • Release of “A Step by Step Guide to Doing Business in Sri Lanka”

    The eighth edition of “A Step by Step Guide to Doing Business in Sri Lanka”, published by the Central Bank of Sri Lanka, which has been categorized under three main chapters; ‘Starting a Business’, ‘During the Business’ and ‘Other Activities’, contains useful information for the business community, potential entrepreneurs, foreign investors and investment promotion agencies. Under each topic, comprehensive information is provided on relevant institutions, documentary requirements, regulatory clearances and associated costs. The necessary amendments up to mid-2018 gathered from relevant institutions are incorporated into this edition.

  • Provincial Gross Domestic Product – 2017

    Provincial Gross Domestic Product (PGDP) estimated by the Statistics Department of the Central Bank of Sri Lanka (CBSL) by disaggregating the annual nominal Gross Domestic Product (GDP) figures published by the Department of Census and Statistics (DCS), using provincial indicators, shows that the Western Province continued to account for the largest share of the country’s nominal GDP. However, in line with recent trends, its share in the GDP declined in 2017, contributing to narrowing of regional disparity. Central and North Western provinces were the second and third highest contributors to the national GDP in nominal terms.

    During 2017, increases in PGDP shares could be observed in Eastern, North Western and Uva provinces, while that of Western, Southern, North Central and Sabaragamuwa provinces decreased. The shares of Central and Northern provinces remain unchanged.

  • International Sovereign Bond Issuances of the Government of Sri Lanka

    The Government of Sri Lanka (GOSL) has been issuing International Sovereign Bonds (ISBs) since 2007. GOSL has maintained an unblemished record on servicing of its debt obligations timely, including ISBs, since independence.

    ISBs issued in January and April 2014 in United State Dollar (USD) 1,000 million and 500 million, respectively, are due to mature in January and April 2019. The Government has already made pre-funding arrangements for meeting the maturing ISB obligations in 2019 through proceeds of divestment of non-strategic assets and funding through syndicate arrangements.

    While exploring an ideal window to further access international capital markets, GOSL and Central Bank of Sri Lanka have already initiated necessary actions to further diversify international market based foreign funding sources to jurisdictions outside conventional Eurodollar ISB issuances.

  • Recent Economic Developments: Highlights of 2018 and Prospects for 2019

    The Central Bank of Sri Lanka today released its half yearly publication - “Recent Economic Developments: Highlights of 2018 and Prospects for 2019”. 

    A summary of the performance of the Sri Lankan economy in 2018 as reflected in this publication is given below:

    The Sri Lankan economy faced renewed challenges emanating from global market developments, which disrupted the steady stabilisation path observed up to the first quarter of the year. The economy grew at a moderate pace of 3.6 per cent in the first half of 2018, following relatively low growth of 3.3 per cent recorded during the year 2017. Agricultural activities continued their rebound in the first half of 2018 supported by favourable weather conditions that prevailed during this period. The growth in industrial activities slowed, mainly due to the subdued performance in the construction and mining and quarrying subsectors. The expansion in services activities was broad-based, driven mainly by the growth of financial services, wholesale and retail trade and other personal services activities. Meanwhile, an increase in the unemployment rate was observed during the first half of 2018. Consumer price inflation has remained subdued thus far in 2018, although temporarily edging up in some months, mainly as a result of movements in volatile food prices and upward adjustments to domestic petroleum and other administered price.

  • External Sector Performance - August 2018

    The external sector performance remained subdued in August 2018. During the month, the deficit in the trade account narrowed marginally compared to a year earlier as the rise in export income outpaced the growth in import expenditure. Meanwhile, other inflows to the current account continued to be modest in August 2018 with a marginal increase in earnings from tourism and a decline in workers’ remittances. On a net basis, the financial account of the Balance of Payments (BOP) recorded outflows during the month, due to withdrawals of foreign investments from both the government securities market and the Colombo Stock Exchange (CSE) and continued debt service payments.

  • The Parliament of Sri Lanka passes the resolution to raise Rs. 310 billion by way of loans in or outside Sri Lanka for Active Liability Management by the Government of Sri Lanka

    The Parliament on 26.10.2018 resolved under section 3 of the Active Liability Management Act of 2018 (ALMA) that “a sum not exceeding Rs. 310.0 billion may be raised by the Government of Sri Lanka (GOSL) by way of loans, in or outside Sri Lanka for such purposes as specified in the provisions of the Active Liability Management Act No 8 of 2018”.

  • Land Price Index – First Half of 2018

    The Central Bank of Sri Lanka (CBSL) compiles and analyses several indicators, in order to monitor the developments in the real estate sector. Accordingly, the Land Price Index (LPI) (base year: 1998) has been compiled annually from 1998-2008 and bi-annually from 2009-2017, covering 50 centers of 5 DS divisions in the Colombo District. With the increasing importance of monitoring land prices due to the recent developments in the real estate sector, the geographical coverage of LPI was expanded to 82 centers covering all DS divisions in the Colombo District and revised its base period from 1998 to 1st half of 2017 to accommodate this expansion. The LPI with improved coverage is available bi-annually from 2017 onwards.

  • Inflation in September 2018

    Headline Inflation, as measured by the change in the National Consumer Price Index (NCPI, 2013=100), which is compiled by the Department of Census and Statistics (DCS), decreased to 0.9 per cent in September 2018, the lowest since January 2016, from 2.5 per cent in August 2018 on year-on-year basis. The deceleration in year-on-year inflation in September was driven by both the base effect and the monthly decline in Food prices. The change in the NCPI measured on an annual average basis decreased from 4.7 per cent in August 2018 to 4.0 per cent in September 2018.