• External Sector Performance – May 2019

    The external sector remained relatively stable in May 2019 supported by a contracting trade deficit. 

    In May 2019, the deficit in the trade account narrowed to US dollars 823 million from US dollars 933 million in May 2018.

    The considerable reduction in the trade deficit in May 2019 was due to the decline in import expenditure by 3.9 per cent (year-on-year) and an increase of export earnings by 4.0 per cent (year-on-year). 

    Earnings from tourism in May recorded a decline of 70.8 per cent (year-on-year), reflecting the impact of Easter Sunday attacks. However, tourist arrivals in June are expected to have recovered with almost a doubling of the number of arrivals in comparison to May 2019. 

  • Sri Lanka Purchasing Managers’ Index - June 2019

    Manufacturing activities expanded at a higher rate in June 2019, recording an index value of 53.9 which is an increase of 3.2 index points, compared to May 2019. This expansion in manufacturing PMI is mainly attributable to the significant recovery in Employment, especially, in manufacturing of food & beverages and textiles & wearing apparels sectors, from the lower employment availability experienced after the Easter Sunday attacks. Expansion in New Orders and Production, particularly in manufacturing of food and beverages sector, also contributed to the improvement of PMI in June 2019. Many respondents also highlighted that New Orders and Production recovered to a greater extent in June with the normalization of economic activities after the disruptions caused by the Easter Sunday attacks.

  • Monetary Policy Review - No. 4 of 2019

    The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 11 July 2019, 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 7.50 per cent and 8.50 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 the global economy. The decision of the Monetary Board is consistent with the aim of maintaining inflation in the desired 4-6 per cent range while supporting economic growth to reach its potential over the medium term.

  • Extension of the Suspension of Business of Perpetual Treasuries Limited

    The Monetary Board of 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 period of six months with effect from 4.30 p.m. on 05th July 2019, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

  • The Democratic Socialist Republic of Sri Lanka - USD 2.0 billion International Sovereign Bond Offering

    On June 24th, 2019, the Central Bank of Sri Lanka (“CBSL”), on behalf of the Democratic Socialist Republic of Sri Lanka (“Sri Lanka”), returned to the U.S. dollar bond markets, successfully pricing a new issuance of U.S.$500 million 5-year and U.S.$1.5 billion long 10-year Senior Unsecured Fixed Rate Bonds (the “Bonds”) with maturity dates of June 28th, 2024 and March 28th, 2030, respectively. The Bonds have been rated ‘B2’, ‘B’ and ‘B’ by Moody’s Investors Service, Standard and Poor’s and Fitch Ratings, respectively.

  • Sri Lanka Launches its National Card Scheme

    The Central Bank of Sri Lanka together with LankaClear (Pvt) Ltd., ( LCPL) achieved a significant milestone in the country’s payment landscape by launching the National Card Scheme (NCS). NCS, will be operated by LCPL in partnership with the international payment card operator JCB International of Japan. Initially, a debit card will be issued under this card scheme. Additionally, the NCS cards will be accepted across over 4,800 ATMs Island wide connected to LankaPay network to facilitate cash withdrawals. 

  • Inflation in May 2019

    Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) decreased to 3.5 per cent in May 2019 from 3.6 per cent in April 2019 due to the high base prevailed in the corresponding month of the previous year. Meanwhile, in May 2019, year-on-year Food and Non-food inflation recorded -0.4 per cent and 6.7 per cent respectively.

    The change in the NCPI measured on an annual average basis increased marginally to 2.0 per cent in May 2019 from 1.9 per cent in April 2019.

  • The National Launch of the Roadmap for Sustainable Finance in Sri Lanka and a High-Level Seminar for Senior Officers of Financial Institutions and Stakeholders

    The Central Bank of Sri Lanka launched the Roadmap for Sustainable Finance in Sri Lanka and hosted a high-level seminar for senior officers of Financial Institutions and Stakeholders on 19 June 2019 at The Atrium of the Central Bank of Sri Lanka, Colombo. This was the National Launch of the Roadmap for Sustainable Finance which was unveiled globally on 10 April 2019 at the Sustainable Banking Network Global Meeting of the International Finance Corporation (IFC) in Washington, D.C, USA. 

  • External Sector Performance - April 2019

    The external sector remained relatively stable in April 2019 supported by a contracting trade deficit.

    In April 2019, the deficit in the trade account narrowed to US dollars 797 million from US dollars 999 million in April 2018.

    The considerable reduction in the trade deficit in April 2019 was due to the decline in import expenditure by 11 per cent (year-on-year) and a marginal increase of export earnings by 0.4 per cent (year-on-year).

  • Sri Lanka Purchasing Managers’ Index - May 2019

    Manufacturing activities recovered to an index value of 50.7 in May 2019 which is an increase of 9.7 index points, compared to April 2019. The recovery of manufacturing PMI is mainly attributable to the significant increase in Production and New Orders, especially, in manufacturing of textiles, wearing apparels, leather and related products. Increase in production was mainly attributable to the fulfilment of accumulated orders using extra hours of factory operations. Many respondents, especially in textile and apparel sector, highlighted that they had to work extra hours on week days as well as in weekends during the month to clear the backlog of orders.

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