• 45th SAARCFINANCE Governors’ Meeting and Symposium

    The Central Bank of Sri Lanka hosted the 45th SAARCFINANCE Governors’ Meeting and Symposium during 13-14 June 2024 in Colombo. The event was attended by the Governors, Finance Secretaries, and other delegates from the Central Banks and Ministries of Finance in the SAARC region.

    The SAARCFINANCE Governors’ Symposium, themed “Central Banking amid Multi-faceted Global Economic Challenges,” was held on the first day of the event. Honourable Ranil Wickramasinghe, the President of Sri Lanka and Minister of Finance, Economic Stabilisation, and National Policies, graced the inaugural ceremony and delivered the keynote speech. In his address, the President emphasised the importance of strengthening regional cooperation to tackle contemporary economic challenges and promote growth. He also reiterated the need for monetary and fiscal stability and highlighted the efforts being taken to strengthen the legal framework to ensure lasting stability in the country. The Secretary General of SAARC, Ambassador Md. Golam Sarwar also attended the inauguration.

  • IMF Executive Board Concludes 2024 Article IV Consultation with Sri Lanka and Completes the Second Review Under the Extended Fund Facility

    The IMF Executive Board completed the 2024 Article IV Consultation and Second Review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with immediate access to SDR 254 million (about US $336 million) to support its economic policies and reforms.

    Performance under the program has been strong. All quantitative targets for end-December 2023 were met, except the indicative target on social spending. Most structural benchmarks due by end-April 2024 were either met or implemented with delay. Nevertheless, the economy is still vulnerable and the path to debt sustainability remains knife-edged. Sustaining the reform momentum and efforts to restructure debt are critical to put the economy on a path towards lasting recovery and debt sustainability.

  • Central Bank of Sri Lanka to Function as the Regulatory and Supervisory Authority of Money or Value Transfer Service Providers

    Currently, institutions providing money transfer services in Sri Lanka such as banks and non-bank financial institutions, are regulated by the Central Bank of Sri Lanka (CBSL) or other relevant authorities to ensure financial system stability. However, some entities providing similar services operate outside the formal system, potentially disrupting the money transfer system and not being subject to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulatory framework.

  • CCPI based headline inflation decelerated in May 2024

    Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) decelerated to 0.9% in May 2024 from 1.5% in April 2024. This deceleration in the headline inflation is broadly in line with the projections of the Central Bank of Sri Lanka (CBSL).

  • Sri Lanka Purchasing Managers’ Index (Construction) - April 2024

    Following the seasonal pattern where activities across many sectors slowdown during the traditional new year celebrations, Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction) decreased to an index value of 31.9 in April 2024. This indicates a contraction in construction activities compared to the previous month. As per the respondents, most construction sites were temporarily closed during the month due to the extended new year holidays, leading to this month-on-month decline.

  • External Sector Performance - April 2024

    Exports increased more than imports (y-o-y), reducing the trade deficit in April 2024. However, cumulative trade deficit for Jan-Apr 2024 widened.

    The momentum in tourism continues, though tourist arrivals slowed in April 2024 in line with the seasonal pattern.

    Inflows to the other services sectors also remained strong in the first four months of 2024.

    Workers’ remittances continued to contribute notably to the external current account and forex market liquidity.

    Foreign investment outflows from the government securities (G-Sec) market continued in April 2024.

  • The Central Bank of Sri Lanka Maintains Policy Interest Rates at their Current Levels

    The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on 27 May 2024, 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 8.50 per cent and 9.50 per cent, respectively. The Board arrived at this decision after carefully assessing the current and expected macroeconomic developments and possible risks on the domestic and global fronts with a view to maintaining inflation at the targeted level of 5 per cent over the medium term while supporting the economy to reach its potential. While the medium term inflation outlook remains compatible with the current level of policy interest rates and inflation expectations are well anchored, the Board observed the need for a further reduction in market lending interest rates in line with policy interest rates and other benchmark interest rates, which is imperative for the easing of domestic monetary conditions and domestic economic recovery.

  • Central Bank Launches Financial Literacy Roadmap of Sri Lanka 2024-2028

    Today, on May 21, 2024, the Central Bank of Sri Lanka launched the Financial Literacy Roadmap of Sri Lanka, marking a significant step towards enhancing the financial capabilities of Sri Lankans. This Roadmap, a cornerstone of Sri Lanka's National Financial Inclusion Strategy (NFIS), offers evidence-based guidance to all stakeholders engaged in financial literacy initiatives, aligning them towards a common objective: improving the financial behaviour of Sri Lankans and bolstering their financial resilience. Developed through collaborative efforts among various stakeholders, led by the Central Bank through the NFIS Secretariat under the Regional Development Department, the Roadmap sets out to foster financial inclusion, enhance consumer protection, and fortify financial stability.

  • Sri Lanka Purchasing Managers’ Index (Manufacturing and Services) - April 2024

    Purchasing Managers’ Indices indicate a contraction in Manufacturing activities and an expansion in Services activities in April 2024

    Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 42.0 in April 2024, indicating a contraction in manufacturing activities following the seasonal pattern. New Orders, Production, Employment and Stock of Purchases sub-indices declined during the month, resulting in an overall decline in the index.

    Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a slower expansion in services activities in April 2024 as reflected by the Business Activity Index, which recorded an index value of 56.7.

  • Public Consultation on Amendments to the Finance Leasing Act, No.56 of 2000 (as amended) (FLA)

    Having recognized the need for strengthening the protection of finance leasing customers and updating the FLA to be in line with the industry developments, the Central Bank of Sri Lanka (CBSL) has initiated amending the FLA.

    To have wider stakeholder consultation, the CBSL is inviting the general public to submit observations/ suggestions/ comments on the draft amendments. The public can access the draft amendments though the following weblink at the CBSL website;