• NCPI based Inflation remained unchanged in June 2021

    Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100), remained unchanged at 6.1 per cent in June 2021 due to the statistical effect of the high base prevailed in June 2020. Meanwhile, Food inflation (Y-o-Y) decreased to 9.8 per cent in June 2021 from 10.3 per cent in May 2021 and Non-Food inflation (Y-o-Y) increased to 2.9 per cent in June 2021 from 2.5 per cent in May 2021.

    The NCPI, measured on an annual average basis, also remained unchanged at 5.4 per cent in June 2021.

  • Imposition of Administrative Penalties by the Financial Intelligence Unit (FIU) to Enforce Compliance on Financial Institutions during the Second Quarter of 2021

    By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. The penalty may be prescribed taking into consideration the nature and gravity of relevant non- compliance of the Financial Institution.

    Accordingly, as Sri Lanka’s regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), the FIU imposed penalties, amounting to Rs. 3.0 million in total for the period from 1 April 2021 to 30 June 2021 to enforce compliance on Financial Institutions. The money collected as penalties were credited to the Consolidated Fund.

  • Response to the Announcement made by Moody's Investors Service

    Following the announcement by Moody’s Investors Service on Sri Lanka’s Sovereign rating, the Ministry of Finance has issued a response, which can be found on the link below:

  • Special Publication by the Central Bank of Sri Lanka on “The 70 Year Journey of Currency Issue and Management”

    The Central Bank of Sri Lanka (CBSL) has published a special publication on the history of currency used in Sri Lanka, titled “The 70 Year Journey of Currency Issue and Management” co-authored by Retired Director Communications of CBSL, Ms. Shellomi H Gunawardena and Retired Senior Manager of CBSL, Mr. W M K Weerakoon.

    The authors have utilized their years of experience at the Currency Department of CBSL, in compiling this publication, to be used as a reference for bankers, students, numismatists, and others who would be interested in the history pertaining to currency in Sri Lanka. The book carries attractive colour illustrations of currency notes and coins used in Sri Lanka from ancient times with historical narratives, which also provide a glimpse of the political, economic and cultural background of the country over the past 70 years.

  • Release of ‘Economic and Social Statistics of Sri Lanka – 2021’ Publication

    ‘Economic and Social Statistics of Sri Lanka – 2021’, 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 restructured the layout of the publication last year, for ease of reference, while adding more statistics to enrich its content. Accordingly, the publication 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 statistics of other countries.

  • Sri Lanka Purchasing Managers’ Index - June 2021

    Purchasing Managers' Indices for both Manufacturing and Services activities recovered in June.

    Manufacturing activities recovered marginally during June 2021 from the adverse impacts of the third wave of the COVID-19 pandemic.

    Services PMI returned to the growth territory in June 2021, recording an index value of 51.3, after declining for two consecutive months.

  • External Sector Performance - May 2021

    The deficit in the trade account widened on a year-on-year basis for the third consecutive month in May 2021. Both exports and imports were significantly higher in May 2021 than in May 2020, mainly due to the statistical effect of pandemic related disruptions a year ago. Earnings from exports increased, while imports declined in May 2021 compared to the previous month. During the month, workers’ remittances continued to increase, while earnings from tourism remained at minimal levels. In the financial account, foreign investment in the government securities market and the Colombo Stock Exchange (CSE) recorded marginal net outflows in May 2021. Meanwhile, the Sri Lankan rupee remained broadly stable throughout the month, and gross official reserves stood at US dollars 4.0 billion by end May 2021.

  • Re-appointment of Mr Sanjeeva Jayawardena, President’s Counsel to the Monetary Board of the CBSL

    Mr Sanjeeva Jayawardena, President’s Counsel, has been re-appointed to the Monetary Board of the Central Bank of Sri Lanka (CBSL), for a fresh term of 6 years, up to June 2027, by His Excellency the President Gotabaya Rajapaksa, consequent to his nomination being approved by the Parliamentary Council.

    Mr.Sanjeeva Jayawardena is the first President’s Counsel to serve on the Monetary Board of the CBSL.

    He presently serves as the Chairman of the Monetary Board Level, External Debt Monitoring Committee and as the Chairman of the Board Risk Oversight Committee. He also chairs the Ethics Committee of the CBSL.

  • Local Companies Permitted to Invest in the International Sovereign Bonds in the Secondary Market

    In terms of the provisions of the Foreign Exchange Act, No. 12 of 2017, the Hon. Minister of Finance has issued Regulations, with the approval of the Cabinet of Ministers, to permit companies incorporated in Sri Lanka under the Companies Act, No. 7 of 2007 (excluding companies engaged in finance business as per the Finance Business Act, No. 42 of 2011) to purchase International Sovereign Bonds issued by the Government of Sri Lanka (ISBs), in the secondary market.

    According to the above Regulations, companies can invest in ISBs utilizing 50% of the foreign currency borrowed from a person resident outside Sri Lanka in terms of the prevailing Foreign Exchange Regulations and subject to the following terms and conditions.

  • Additional interest up to 2% per annum extended for 2 years for Special Deposit Accounts (SDAs)

    Considering the potential of Special Deposit Accounts (SDAs) to attract a substantial amount of foreign exchange into the country and the resultant positive impact on the foreign currency reserve position of the country and the overall economy, the Hon. Minister of Finance with the recommendation of the Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to grant permission to rollover SDAs up to an accumulated period of 24 months from the initial date of placing such deposits. SDAs so rolled over will be eligible for additional interest up to 2% per annum offered by the Government.

    The Government of Sri Lanka introduced the SDAs on 08 April 2020 to seek assistance for the national effort to overcome the effects of COVID-19 pandemic in the country. Accordingly, as at 02 July 2021, total deposits received into SDAs amounted to approximately USD 458 million.

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