Indicating a strong revival in manufacturing activities in the country, the manufacturing PMI reached a 9-month high at 67.0 in March 2021. This was largely attributable to the increases observed in Production, New Orders, and Stock of Purchases sub-indices.The significant increases in New Orders and Production sub-indices, particularly in the manufacture of food & beverages and textile & wearing apparel sectors, have mainly contributed to the improvement in the overall index. Many respondents in the manufacture of food & beverages sector highlighted that they experienced higher levels of sales and production during March 2021 ahead of the New Year festival season. Further, respondents from the textile & wearing apparel sector mentioned that they increased production during the month to cover-up seasonal holidays.
-
Sri Lanka Purchasing Managers’ Index - March 2021
-
Suspension of Business of 'Swarnamahal Financial Services PLC'
The Monetary Board of the Central Bank of Sri Lanka (Monetary Board) has decided to suspend business of Swarnamahal Financial Services PLC (SFSP), in terms of Section 31(1) of the Finance Business Act, No. 42 of 2011 (FBA) with effect from 5:00 p.m. on 12th April 2021. Having considered the continuously deteriorating financial condition and non-availability of a viable revival plan, the Monetary Board decided to suspend the business of SFSP and its parent Company ETI Finance Limited (ETIF) in terms of Section 31(1) of the FBA with effect from 13th July 2020 and the period of suspension of business activities was in effect until 12th January 2021.
-
Payment of Additional Compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme
The Central Bank of Sri Lanka wishes to inform the depositors/legal beneficiaries of The Finance Company PLC that the payment of additional compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme will commence on 12.04.2021 as already scheduled.
-
Public awareness on Risks in investing in Virtual Currencies in Sri Lanka
Considering the recent inquiries on virtual currency usage in the international and domestic markets, the Central Bank of Sri Lanka (CBSL) wishes to inform the public of the risks associated with investing in Virtual Currencies. “Virtual Currencies (VCs)” are digital tokens created by private entities that can be obtained online through mining, Initial Coin Offerings (ICOs) or through Virtual Currency Exchanges. VCs are also commonly referred to as cryptocurrencies. Popular VCs include Bitcoin, Ethereum, Litecoin. While VCs have their own value denominations such as bitcoins for Bitcoin and ethers for Ethereum, they are usually valued in VC Exchanges in currencies issued by Central Banks, e.g., US dollar (USD), Japanese Yen, etc. However, it is important to note that VCs are not issued by Central Banks and are also not generally backed by underlying assets.
-
Central Bank commences the payment of increased compensation to the depositors of Failed Finance Companies
The Central Bank of Sri Lanka (CBSL) has commenced payment of the increased compensation amount of Rs 500,000/- under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS), to the depositors / relevant legal beneficiaries of Central Investments and Finance Limited (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP).
-
The Central Bank of Sri Lanka continues its Accommodative Monetary Policy Stance
The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 07 April 2021, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 4.50 per cent and 5.50 per cent, respectively. The Board arrived at this decision after carefully considering the macroeconomic conditions and expected developments on the domestic and global fronts. The Board remains committed to maintaining the low interest rate structure, thereby ensuring continued support for a sustained economic recovery, in the context of the prevailing low inflation environment and well anchored inflation expectations.
-
Erroneous News Report on Debt Service Payments on account of Sri Lanka Development Bonds and Foreign Currency Loans from Domestic Banks
The Central Bank observes, with disappointment, a certain newspaper today publishing an erroneous and unsubstantiated report of a planned delay in settlement of dues on account of Sri Lanka Development Bonds (SLDBs) and Foreign Currency Loans obtained by the Government from Domestic Banks.
-
CCPI based Inflation increased to 4.1 per cent in March 2021
Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) increased to 4.1 per cent in March 2021 from 3.3 per cent in February 2021. This was due to the statistical effect of the low base prevailed in March 2020. Meanwhile, Food inflation (Y-o-Y) increased to 9.6 per cent in March 2021 from 7.9 per cent in February 2021. Further, Non-food inflation (Y-o-Y) increased to 1.8 per cent in March 2021 from 1.3 per cent in February 2021.
-
The Central Bank of Sri Lanka enters into a Bilateral Currency Swap Agreement with the People’s Bank of China
The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBoC) entered into a bilateral currency swap agreement with a view to promoting bilateral trade and direct investment for economic development of the two countries, and to be used for other purposes agreed upon by both parties. The People’s Republic of China remains Sri Lanka’s largest source of imports. In 2020, imports from China amounted to US$ 3.6 billion (22.3% of Sri Lanka’s imports).
-
NCPI based Inflation increased in February 2021
Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 4.2 per cent in February 2021 from 3.7 per cent in January 2021. This was mainly driven by the monthly increase in prices of items in the Food category. Accordingly, Food inflation (Y-o-Y) increased to 6.9 per cent in February 2021 from 5.9 per cent in January 2021. Further, Non-Food inflation (Y-o-Y) increased marginally to 1.9 per cent in February 2021 from 1.8 per cent in January 2021.