In terms of Section 70(1) of the Central Bank of Sri Lanka Act, No. 16 of 2023, the Central Bank of Sri Lanka released its annual Financial Stability Review (FSR) for 2026. This statutory report provides an assessment of the stability of the financial system, identifies and evaluates the associated risks and vulnerabilities, and outlines the policy measures implemented by the Central Bank and other regulatory authorities. The report generally covers data up to end June 2026. The electronic version of the publication can be accessed through the Central Bank website.
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The Central Bank of Sri Lanka Releases the Financial Stability Review for the Year 2026
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The Central Bank of Sri Lanka Inaugurates The Financial Literacy Month – 2026
The Central Bank of Sri Lanka (CBSL) inaugurates the Financial Literacy Month – 2026 (FinLit Month) on 08 October 2026, commencing with “FinLit Expo – Colombo” at the Centre for Banking Studies, Rajagiriya. This national programme brings together a range of interventions across the island to strengthen financial knowledge, promote responsible financial behaviour and advance financial inclusion. Financial Literacy Month forms part of a broader national initiative under the Financial Literacy Roadmap for Sri Lanka, implemented under the National Financial Inclusion Strategy (NFIS).
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The Central Bank of Sri Lanka releases the Key Findings of the Systemic Risk Survey (SRS) – H2 of 2026
The Central Bank of Sri Lanka (CBSL) has released the key findings of the latest Systemic Risk Survey (SRS) conducted for the second half of 2026 (H2 of 2026), capturing financial market participants’ perceptions of risks to, and their confidence in, the Sri Lankan financial system. The survey was conducted from 17 July 2026 to 14 August 2026.
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IMF Reaches Staff-Level Agreement on the Seventh Review under the Extended Fund Facility with Sri Lanka
The International Monetary Fund (IMF) staff and the Sri Lankan authorities have reached staff-level agreement on the Seventh Review under the 4-year Extended Fund Facility (EFF) arrangement and concluded the 2026 Article IV Consultation discussions.
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Sri Lanka’s Inflation Target is set at 5% for the next three years
The Minister of Finance, Planning and Economic Development and the President of Sri Lanka, Hon. Anura Kumara Dissanayake, and the Governor of the Central Bank of Sri Lanka, Dr. P Nandalal Weerasinghe, signed a new Monetary Policy Framework Agreement (MPFA) in terms of Section 26 of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBA) on 01 October 2026. The Agreement was published in Government Gazette Extraordinary No. 2508/28 dated 01 October 2026.
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CCPI-based headline inflation remained unchanged in September 2026
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained unchanged at 8.0% in September 2026 compared to August 2026.
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External Sector Performance - August 2026
The external current account recorded a surplus of US$ 133 million in August 2026 following four consecutive months of deficits. The surplus was supported by the lower trade deficit compared to recent months, reflecting lower import expenditure. The current account recorded a cumulative deficit of US$ 291 million during January-August 2026, reflecting pressures on the external sector stemming from the escalation of the Middle East conflict.
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Sri Lanka PMI - Construction expanded in August 2026
The Sri Lanka Purchasing Managers' Index for Construction (PMI - Construction), as reflected by the Total Activity Index, recorded 59.4 in August 2026, indicating continued expansion in construction activities, albeit at a slower rate than in the previous month. Many survey respondents highlighted the ongoing bitumen shortage, which continued to constrain road construction progress, limiting the overall growth momentum of the construction industry.
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The Central Bank of Sri Lanka maintains the policy rate at the current level
The Monetary Policy Board, at its meeting held yesterday, decided to maintain the Overnight Policy Rate (OPR) at the current level of 8.75%. The Board arrived at this decision after carefully considering the evolving conditions and outlook on the domestic and global fronts. The Board paid particular attention to the effects of the proactive monetary policy tightening in May 2026 alongside other measures that had already materialised to a large extent. The Board also recognised the uncertainty arising from evolving geopolitical tensions in the Middle East and potential risks associated with El Niño conditions on the economy.
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The Central Bank of Sri Lanka releases the “Sri Lanka Socio-Economic Data – 2026” Publication
“Sri Lanka Socio-Economic Data – 2026”, the annually published data folder of the CBSL, is now available for public information. The current data folder is the 49th volume of the series.