Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) increased to 64.3% in August 2022 from 60.8% in July 2022. This increase in Y-o-Y inflation was mainly driven by the monthly increases of both Food and Non-Food categories. Accordingly, Food inflation (Y-o-Y) increased to 93.7% in August 2022 from 90.9% in July 2022, while Non-Food inflation (Y-o-Y) increased to 50.2% in August 2022 from 46.5% in July 2022.
-
CCPI based headline inflation recorded at 64.3% on year-on-year basis in August 2022
-
Central Bank of Sri Lanka joins hands with the Foreign Employment Bureau to promote the LankaRemit mobile application
With the aim of popularizing the LankaRemit National Remittance Mobile Application among migrant workers, the Central Bank of Sri Lanka (CBSL) and the Sri Lanka Bureau of Foreign Employment (SLBFE) held a ceremony on 26 August 2022 at SLBFE to demonstrate its features. LankaRemit provides Sri Lankan expatriates with access to a fast, secure and more convenient remittance channel to send money to Sri Lanka.
CBSL in collaboration with LankaClear (Private) Limited (LCPL) implemented the “LankaRemit” mobile application with the launching of the first phase in February 2022. CBSL is in the process of creating awareness of “LankaRemit” locally and internationally with the support of stakeholders such as the Ministry of Foreign Affairs, Ministry of Labour and Foreign Employment and the SLBFE.
-
Release of ‘Economic and Social Statistics of Sri Lanka – 2022’ Publication
‘Economic and Social Statistics of Sri Lanka – 2022’, an annual publication of the Central Bank of Sri Lanka, is now available for public access.Statistics Department of the Central Bank of Sri Lanka publishes this booklet, which consists of statistical tables categorised under eight major areas, i.e. ‘National Accounts’, ‘Economic and Social Infrastructure’, ‘Prices, Wages and Employment’, ‘External Trade and Finance’, ‘Government Finance’, ‘Money and Capital Markets’, ‘Financial Sector’ and a section including statistics of other countries. This publication will be a useful collection of information for those who are interested in socio-economic statistics.
-
NCPI based headline inflation recorded at 66.7% on year-on-year basis in July 2022
Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 66.7% in July 2022 from 58.9% in June 2022. This increase in Yo-Y inflation was mainly driven by the monthly increases of both Food and Non-Food categories. Accordingly, Food inflation (Y-o-Y) increased to 82.5% in July 2022 from 75.8% in June 2022, while Non-Food inflation (Y-o-Y) increased to 52.4% in July 2022 from 43.6% in June 2022.
-
Land Valuation Indicator – First Half of 2022
Land Valuation Indicator (LVI) for Colombo District increased to 186.9 with a year-on-year change of 17.0 per cent during the first half of 2022. This annual increase (17.0) and the semi-annual increase (4.6 per cent) of LVI, showed a deceleration of the increasing trend observed in the second half of 2021.
All sub-indicators of LVI, namely Residential LVI, Commercial LVI and Industrial LVI contributed to the overall increase. Industrial LVI recorded the highest annual increase of 20.6 per cent, followed by Commercial LVI and Residential LVI.
-
Amnesty to Deposit/Sell Foreign Currency in the Hands of the Public
In order to attract foreign currency held with the public into the banking system, the Minister of Finance has issued an Order granting an amnesty period of 1 month effective from 15.08.2022 for persons in, or resident in, Sri Lanka who hold foreign currency notes in possession to:
i. Deposit into a Personal Foreign Currency Account or into a Business Foreign Currency Account as specified in the Order, as applicable; or
ii. Sell to an Authorized Dealer (Licensed Commercial Bank or National Savings Bank).
-
The Central Bank of Sri Lanka Maintains Policy Interest Rates at their Current Levels
The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 17 August 2022, 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 14.50 per cent and 15.50 per cent, respectively. In arriving at this decision, the Board considered the latest model-based projections, which point towards a larger than expected contraction in activity and a faster than expected easing of price pressures, compared to the previous monetary policy review. Contractionary monetary and fiscal policies already in place, alongside the measures to curtail non urgent import expenditure, are expected to result in a notable contraction in credit to the private sector and possible upside risks to unemployment in the near term. The Board was of the view that despite headline inflation is projected to remain elevated in the near term, the policy measures taken by the Central Bank and the Government thus far would help contain any aggregate demand pressures, thereby anchoring inflation expectations, along with the anticipated decline in global commodity prices and its passthrough to domestic prices in the period ahead.
-
The Appearance of Erroneous News Items referring to Statements made by the Governor of the Central Bank of Sri Lanka on various websites and social media platforms
Sinhala translations of articles construed to be authored by the Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, in English, have been circulating in websites and social media platforms these days.
For example, since of late, there has been numerous instances where articles under the topic “Inflation is not a Problem, but a Solution…..This Economic Crisis may be the best thing that happened to us – says Central Bank Governor” or similar topics have been circulating widely in social media.
-
Relaxation of the Mandatory Conversion Requirement on Service Export Receipts/Proceeds
With the view of encouraging service exporters to repatriate their export proceeds into the country, the Central Bank of Sri Lanka has withdrawn the mandatory requirement to convert service export receipts/proceeds, that are received in Sri Lanka on or after 12 August 2022. The service exporters may use their export proceeds so repatriated to Sri Lanka for the permitted purposes. The mandatory requirement to receive proceeds of service exports to the country within 180 days from the date of provision of services remains unchanged.
-
Sri Lanka Purchasing Managers’ Index - July 2022
Purchasing Managers' Indices for both Manufacturing and Services activities decreased in July 2022.
Manufacturing PMI declined in July 2022, indicating a contraction in manufacturing activities on a month-on-month basis.
Services PMI recorded an index value of 43.0 in July 2022 indicating a contraction in services activities for the fourth consecutive month.