• Licensed Banks to enhance Minimum Capital by end 2020

    The Central Bank of Sri Lanka with a view to ensuring a stronger and dynamic banking sector has increased the minimum capital requirements for licensed commercial banks (LCBs) and licensed specialised banks (LSBs). The capital considered for this purpose is largely represented by high quality capital, which has higher loss absorbing capacity.

    Enhancing minimum capital requirement will support the implementation of Basel III framework in Sri Lanka to strengthen the resilience of banks, and may lead to consolidation in the banking sector. Accordingly, with immediate effect, new banks to be established or incorporated in Sri Lanka are required to meet following capital requirements:

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  • External Sector Performance - August 2016

    The external sector recorded a modest performance during August 2016 amidst the widening of the trade deficit while inflows from tourism and workers’ remittances grew at a healthy rate. Although exports recorded a considerable growth during August 2016, imports also grew resulting in a widening of the trade deficit. However, earnings from tourism and workers’ remittances grew, cushioning the impact of the trade deficit. Meanwhile, inflows to the financial account were supported by foreign investments to the government securities market and the Colombo Stock Exchange (CSE) and long-term loan inflows to the government in August 2016.

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  • Inflation in September 2017

    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), increased to 8.6 per cent in September 2017 from 7.9 per cent in August 2017, on year-on-year basis. Both Food and Nonfood categories contributed towards the year-on-year inflation in September 2017.

    The change in the NCPI measured on an annual average basis increased from 6.5 per cent in August 2017 to 6.8 per cent in September 2017.

  • 9th International Research Conference of Central Bank of Sri Lanka

    The 9th International Research Conference of the Central Bank of Sri Lanka was held on 2 December 2016 at the John Exter International Conference Hall of the Central Bank. The conference, organised by the Economic Research Department of the Central Bank, aims to stimulate research on contemporary themes while providing a forum for researchers of central banks, monetary authorities, universities and other research institutions to present recent theoretical and empirical work on issues relating to central banking and macroeconomic management. Since its inception in 2008, the International Research Conference has attracted scholars from across the globe and featured keynote addresses by eminent central bankers, academics and policy makers.

  • SL Purchasing Managers’ Index Survey - November 2016

    The Manufacturing Sector PMI was 58.4 in November with an increase of 1.9 index points compared to October 2016 indicating that the manufacturing activities expanded in November compared to October. This was mainly due to the higher pace in which Employment and Production sub-indices expanded during the month. The New Orders sub-index also increased during the month. The Stock of Purchases sub-index decelerated in November indicating a usage of stocks for the upcoming season while Suppliers’ Delivery Time lengthened. Overall data points to an expansion where all the sub-indices are above the neutral 50.0 threshold. The expectations for activities indicated an improvement for the next three months.

  • Inflation in November 2016

    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, increased marginally to 4.2 per cent in December 2016 from 4.1 per cent in November 2016, on year-on-year basis. Both

    Food and Non-food categories contributed towards the year-on-year inflation in December 2016. The change in the NCPI measured on an annual average basis remained unchanged from last month at 4.0 per cent in December 2016.

  • External Sector Performance - August 2017

    Sri Lanka’s external sector showed a mixed performance in August 2017. Although export earnings increased in August 2017, higher growth in import expenditure resulted in an expansion of the trade deficit. Despite the increase in tourist earnings in August 2017, the decline in workers’ remittances together with the expanded trade deficit dampened the performance of the external current account. However, the financial account of the Balance of Payments (BOP) was supported by the receipt of the second tranche of the foreign currency term financing facility to the government along with continued foreign inflows to the Colombo Stock Exchange (CSE) and the government securities market in August 2017.

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

    The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the findings so far, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.

    • The 2018 budget should continue fiscal consolidation, supported by the new Inland Revenue Act. 
    • Monetary policy should remain vigilant to pressures on inflation and credit growth.
    • Upholding the reform momentum is key to addressing vulnerabilities and sustaining inclusive growth.

    After constructive discussions with the authorities in Colombo and during the Annual Meetings, an IMF staff team issued the following statement in Washington DC: 

  • Monetary Policy Review - December 2016

    According to the provisional estimates of the Department of Census and Statistics (DCS), the Sri Lankan economy is estimated to have grown by 4.1 per cent during the third quarter of 2016 compared to the growth of 5.6 per cent in the corresponding period of the previous year. Services activities grew by 4.7 per cent, while Industry activities grew notably by 6.8 per cent during the third quarter of 2016. However, Agriculture related activities continued to report a contraction, for the second consecutive quarter, by 1.9 per cent, impacted by the adverse weather conditions that prevailed during the third quarter of 2016.

  • Dr. Indrajit Coomaraswamy is named Central Bank Governor of the Year, South Asia by Global Capital Markets publication

    The Central Bank of Sri Lanka is pleased to announce that Dr. Indrajit Coomaraswamy, Governor Central Bank of Sri Lanka has been named Central Bank Governor of the Year, South Asia, by the popular publication house Global Capital at Global Capital Markets Awards ceremony in Washington DC on 14 October 2017, which coincides with the World Bank-IMF Annual meetings. “GobalCapital is a leading news, opinion and data service for people and institutions working in the international capital markets”

    ( http;//www.globalcapital.com/about-global-capital )

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