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 further period of six months with effect from 4.30 p.m. on 05th January 2025, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.
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Extension of the Suspension of Business of Perpetual Treasuries Limited
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CCPI-based headline inflation continued to remain in the negative territory in December 2024
In line with the Central Bank’s near term projections, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) remained in the negative territory for the fourth consecutive month, recording a deflation of 1.7% in December 2024 compared to the deflation of 2.1% in November 2024.
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External Sector Performance - November 2024
The external sector of the Sri Lankan Economy continued to strengthen further in November 2024, supported by higher inflows in the form of earnings from tourism and workers’ remittances.
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Sri Lanka Purchasing Managers’ Index (Construction) - November 2024
Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction) expanded, albeit at a slower pace in November 2024, recording a Total Activity Index value of 51.4. Several respondents mentioned that the severe weather conditions that prevailed during the month somewhat disrupted their scheduled work.
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Exchange of International Sovereign Bonds under the Local Bonds Option for Eight (8) New LKR Treasury Bonds pursuant to the External Debt Restructuring (EDR)
The Invitation Memorandum for the exchange of International Sovereign Bonds of the Democratic Socialist Republic of Sri Lanka dated 25 November 2024 (the "Invitation Memorandum") was published by the Ministry of Finance, Planning and Economic Development with subsequent announcement of the final results of the consent solicitation for the exchange on 16 December 2024 (terms used herein but otherwise not defined have the meanings given to such terms in the Invitation Memorandum).
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Relief Measures to Assist the Affected Small and Medium Enterprises
The Central Bank of Sri Lanka issued a Circular to Licensed Banks on 19.12.2024, highlighting relief measures to be provided to the Small and Medium Enterprises (SMEs) affected due to the Easter Sunday attack, COVID-19 pandemic, and the extraordinary macroeconomic conditions that prevailed during the recent past, as agreed by the Sri Lanka Banks’ Association (Guarantee) Ltd. (SLBA) during the meetings of the Working Committee on Recovery of Loans by Banks (Special Provisions) (Amendment) Act, No. 26 of 2024.
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Provincial Gross Domestic Product (PGDP) - 2023
Western Province held onto its dominant economic position despite a slight decline in share..
Western province accounted for the largest share (43.7 per cent) of Sri Lanka's nominal GDP in 2023, although this indicated a marginal decline in its contribution compared to the previous year. The dominant role of the Western province was particularly evident across the Industry and Services sectors. Meanwhile, North Western (10.9 per cent) and Central provinces (10.3 per cent) remained the closest contenders, securing the second and third positions, respectively.
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Progress on Combating Prohibited Schemes under Section 83(C) of the Banking Act No 30 of 1988, as amended
The Central Bank of Sri Lanka (CBSL) has taken proactive measures to address the alarming increase in prohibited schemes, which poses risks to the financial system stability and protection of the general public from such schemes. These initiatives include conducting investigations under Section 83C(3) of the Banking Act to determine whether individuals or entities have contravened or are likely to contravene the provisions of Section 83C(1) of the Banking Act.
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SL Purchasing Managers’ Index (PMI) – November 2024
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in November 2024.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 53.3 in November 2024. This indicates an expansion in manufacturing activities on a month-on-month basis, with positive contributions from all the sub-indices.
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The Central Bank of Sri Lanka holds its 13th International Research Conference
The Central Bank of Sri Lanka held its flagship research event, the 13th International Research Conference, on 13 December 2024 at the John Exter International Conference Hall of the Central Bank. The Conference aimed at stimulating innovative theoretical and empirical research on various contemporary macroeconomic policy issues. It provided researchers from diverse backgrounds a platform to discuss their views, findings, and experiences from varied perspectives. This year’s Conference marked a significant milestone as it was held for the first time since 2019, following a hiatus due to the COVID-19 pandemic and the subsequent economic crisis faced by the country.