• Sri Lanka Purchasing Managers’ Index - December 2019

    Manufacturing PMI expanded at a slower pace in December 2019 recording an index value of 54.3 mainly due to the slower expansion in New Orders, Production and Stock of Purchases.

    All the sub-indices indicated an expansion, yet at a slower pace, compared to November 2019. New Orders and Production expanded at a slower rate owing to the slowdown in manufacturing of textile and wearing apparel sector. A significant slowdown in employment was experienced, particularly in manufacturing of wearing apparel sector as potential employees were attracted to seasonal jobs for better remuneration. This slowdown in employment partly impacted the slowdown in production.

  • Road Map 2020 - Monetary and Financial Sector Policies for 2020 and Beyond

    Today, the Sri Lankan economy is at a crossroads. Decades of policy making as a sovereign nation have produced improvements in many aspects of the economy. There was significant social upliftment. Nevertheless, tough challenges remain – below potential growth, persistence of poverty pockets, underutilisation of productive resources, inadequate expansion and diversification of exports, shortfall of non-debt creating capital inflows, large credit and interest rate cycles, and high fiscal deficits and public debt levels. These challenges, which have been the outcomes of policy as well as non-policy factors, need to be addressed decisively for the economy to takeoff to a high and sustainable growth path.

  • 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 January 2020, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

  • Meeting of Targets on Average Weighted Prime Lending Rate for end 2019 in line with the Monetary Law Act Order No. 2 of 2019

    The Monetary Law Act Order No. 02 of 2019 on “Enhancing Efficiency of the Transmission of Recent Policy Decisions to Rupee Denominated Market Lending Rates” required, inter alia, every licensed commercial bank (LCB) to reduce their weekly Average Weighted Prime Lending Rate (AWPR)  by at least 250 basis points by 27 December 2019, compared to their AWPR published by the Central Bank of Sri Lanka as at 26 April 2019 in the Weekly Economic Indicators publication. This shall not apply to LCBs, whose AWPR reaches or falls below 9.50 per cent per annum as at the date of this Order or anytime thereafter.  

  • Monetary Policy Review - No. 8 of 2019

    The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 26 December 2019, decided to maintain its accommodative monetary policy stance with the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank remaining at their current levels of 7.00 per cent and 8.00 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 4-6 per cent range while supporting economic growth to reach its potential over the medium term.

  • Prof. W D Lakshman Takes Office as the Governor of the Central Bank of Sri Lanka

    Newly appointed Governor of the Central Bank of Sri Lanka Deshamanya Professor W D Lakshman assumed duties in his new post on Tuesday, the 24th of December 2019 at the Governor’s office in Colombo. His appointment was made by His Excellency the President of the Democratic Socialist Republic of Sri Lanka Gotabaya Rajapaksa, according to the provisions of the Monetary Law Act No.58 of 1949. Accordingly, Professor Lakshman will function as the Chairman of the Monetary Board of the Central Bank of Sri Lanka.

  • Inflation decreased in November 2019

    Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) decreased to 4.1 per cent in November 2019 from 5.6 per cent in October 2019 contributed by the statistical effect of the high base prevailed in November 2018. Year-on-year (Y-o-Y) Food inflation decreased substantially to 4.0 per cent in November 2019 from 7.3 per cent in October 2019 while Non-food inflation (Y-o-Y) declined marginally to 4.2 per cent in November 2019 from 4.3 per cent in October 2019.

  • Response to the Revision of Sri Lanka’s Rating Outlook by Fitch Ratings

    Following the Fitch Ratings’ announcement on the revision to the Outlook on Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) on 19 December 2019, the Ministry of Finance, Economic and Policy Development has issued a response, which can be found on the link below:

  • Sri Lanka Purchasing Managers’ Index - November 2019

    Manufacturing PMI expanded in November 2019 recording an index value of 56.0 mainly due to the expansion in New Orders, Production and Employment. 

    All the sub-indices indicated an expansion, yet at a slower pace compared to October 2019. New Orders and Production expanded at a slower rate mainly due to the slowdown in manufacturing of textile and wearing apparel. Employment slowed down marginally in line with these developments.

  • External Sector Performance - October 2019

    The trade deficit contracted in October 2019 (year-on-year), with the decline in expenditure on imports and a marginal decline in earnings from exports. The trade deficit contracted during the first ten months of 2019 compared to the corresponding period in 2018, as a result of the notable decline in cumulative expenditure on imports along with increased cumulative earnings from exports. Meanwhile, the drop in tourist arrivals was contained further in October 2019. Workers’ remittances improved (year-on-year) in October 2019, although a cumulative decline was recorded. In the financial account, foreign investment in the CSE recorded a net outflow while the government securities market recorded a marginal net inflow in October 2019. The exchange rate recorded mixed movements during the month of October and remained appreciated against the US dollar so far during the year. 

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