• Land Price Index – Second Half of 2018

    Land Price Index (LPI) for Colombo District, compiled by the Central Bank of Sri Lanka (CBSL), reached 125.9 during the 2nd half of 2018, recording an increase of 18 per cent compared to the 2nd half of 2017. The three sub-indices of LPI, namely residential, commercial and industrial have contributed to this increase.

    LPI is compiled covering all Divisional Secretariat (DS) divisions of Colombo District using per perch bare land prices collected from the Government Valuation Department in order to monitor the developments in the real estate sector. To maintain homogeneity, three separate sub-indices for residential, commercial and industrial lands are computed, considering the diverse nature of the land use, and the overall LPI is calculated by taking the average of these three sub-indices.

  • IMF Reaches Staff-Level Agreement on the Fifth Review of Sri Lanka’s Extended Fund Facility

    A staff team from the International Monetary Fund (IMF) led by Manuela Goretti visited Colombo during February 14-28, 2019 to resume discussions on the fifth review under Sri Lanka’s economic reform program supported by a three-year Extended Fund Facility (EFF) arrangement. At the end of the visit, Ms. Goretti made the following statement:

  • The Financial Action Task Force Endorsed the Progress Made by Sri Lanka

    The Financial Action Task Force (FATF), the global policy setter on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT),   has made the initial determination that Sri Lanka has completed its action plan and warrants an on-site assessment to verify that the implementation of Sri Lanka’s AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future. The decision was taken at the FATF Plenary held during 20-22 February 2019 in Paris. 

  • Monetary Policy Review - No. 1 of 2019

    The Monetary Board of the Central Bank, at its meeting held on 21 February 2019, decided to reduce the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of commercial banks by 1.00 percentage point to 5.00 per cent with effect from 01 March 2019. The Board also decided to keep the policy interest rates of the Central Bank unchanged at their current levels, and accordingly, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank will remain at 8.00 per cent and 9.00 per cent, respectively. The Board arrived at this decision following a careful analysis of current and expected developments in the domestic economy and the financial market as well as in the global economy, with the broad aim of stabilising inflation at mid single digit levels in the medium term to enable the economy to reach its potential.

  • Inflation in January 2019

    Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) increased to 1.2 per cent in January 2019 from 0.4 per cent in December 2018. The increase observed in year-on-year inflation in January 2019 is driven by the base effect and increase of prices of items in Non-food category. Year-on-year Non-food inflation increased to 6.5 per cent in January 2019 from 4.7 per cent in December 2018. However, year-on-year Food inflation decreased further to -4.8 per cent in January 2019 from -4.5 per cent in December 2018.

    The change in the NCPI measured on an annual average basis decreased to 1.8 per cent in January 2019 from 2.1 per cent in December 2018.

  • A Response From the Governor, CBSL to the News Item Published in LankaCNews

    It has come to my attention about an article dated 17.02.2019 published in LankaCNews website, stating to be of a letter addressed to me by Hon. Wimal Weerawansa, MP, regarding transactions pertaining to ETI Finance Ltd. Although, I have still not received such a letter, I wish to clarify the below points with respect to the said webpage.

  • Sri Lanka Purchasing Managers’ Index - January 2019

    Manufacturing activities expanded at a higher rate in January 2019 compared to December 2018. This was mainly driven by the expansion in employment and production, especially in manufacturing of textiles, wearing apparels, leather and related activities. A significant improvement in employment was experienced with the recruitment of new employees to fill the vacancies. Accordingly, the production also increased with the enhanced level of employment as well as the orders carried forward from the previous month.

  • Sale of Subsidiaries, Sub-Subsidiaries and Investment Properties of ETI Finance Ltd

    This refers to an article published on 13.02.2019 in an English daily newspaper relating to the above matter.

    The Central Bank of Sri Lanka (CBSL) noted that there were several incorrect and misleading information in the contents of the abovementioned article and wish to state CBSL’s observations as follows:

  • Regulatory Actions Taken by the Central Bank of Sri Lanka on The Finance Co PLC

    The Finance Company PLC (TFC), a Finance Company licensed under the Finance  Business Act No. 42 of 2011 (FBA) was severely impacted by the failure of a number of financial institutions within the group in 2008. Since then the financial status of the company deteriorated gradually and currently with severe liquidity issues, which need to be addressed, immediately. Although, several efforts were made to identify prospective investors and to restructure the company, such efforts have not materialized yet. Thus the continuity of current status will be further detrimental to the interest of depositors and other stakeholders of the company.

  • Sale of Subsidiaries, Sub-Subsidiaries and Investment Properties of ETI Finance Ltd

    It has come to the notice of the Central Bank of Sri Lanka (CBSL) that some misinformation is circulating pertaining to ETI Finance Ltd (ETIF) disposing its subsidiaries, sub-subsidiaries and investment properties, and the involvement of CBSL therein.

    With regard to the said transaction, CBSL wishes to clarify the following:

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