• NCPI based Inflation increased in June 2020

    Headline inflation as measured by the yearon-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 6.3 per cent in June 2020 from 5.2 per cent in May 2020. This was mainly driven by the monthly increase in prices of items in the Food category. Accordingly, Food inflation (Y-o-Y) increased to 13.6 per cent in June 2020 from 11.1 per cent in May 2020, while Non-food inflation (Y-o-Y) remained unchanged at 0.8 per cent in June 2020. 

    The change in the NCPI measured on an annual average basis increased to 5.6 per cent in June 2020 from 5.2 per cent in May 2020.

  • Continuation of Measures Taken to Preserve the Foreign Currency Reserve Position of Sri Lanka

    With a view to preserve the foreign currency reserve position of the country and considering the possible negative impact to the Sri Lankan economy due to the outbreak of Covid-19 pandemic, the Hon. Minister of Finance, Economic and Policy Developments with the recommendation of the Monetary Board of the Central Bank of Sri Lanka and the approval of the Cabinet of Ministers have issued an Order introducing following measures on outward remittances on Capital Transactions for a period of six (06) months effective from 02 July 2020.

  • Sri Lanka Purchasing Managers’ Index - June 2020

    Benefitting from the normalizing of economic activities in the country following the complete relaxation of restrictions for mobility, the Manufacturing PMI increased significantly in June 2020 recording 67.3 with a month-on-month increase of 18.0 index points compared to May 2020.

  • Appointments to the Monetary Board - Mr Sanjeeva Jayawardena PC, Dr (Mrs) Ranee Jayamaha and Mr Samantha Kumarasinghe

    Three new members have assumed duties as serving members of the Monetary Board of the Central Bank of Sri Lanka (CBSL), pursuant to being appointed to the Board by His Excellency the President, under section 8(2)(c) of the Monetary Law Act with the approval of the Constitutional Council.

  • External Sector Performance – May 2020

    The external sector showed signs of stabilisation, with the removal of most lockdown measures in the second week of May 2020. The impact of restrictions on non essential imports was observed in May with a notable reduction in merchandise imports. Meanwhile, merchandise exports, which dropped significantly in April, rebounded more than expected during the month. Workers’ remittances were significantly low in May 2020 compared to the same period in 2019, but recorded a notable increase compared to the extreme low levels recorded in April 2020. In relation to financial flows, the total exposure of foreign investment in the government securities market remained significantly low with a marginal outflow of government securities being recorded in May. With the resumption of trading in the Colombo Stock Exchange (CSE) in mid May 2020, there were some outflows of foreign investment.

  • Compensation Payments to the depositors of The Finance Company PLC under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS)

    The compensation payments to the depositors of The Finance Company PLC under the SLDILSS subject to a maximum amount of Rs.600,000 per depositor was commenced on 07.06.2020 through 63 branches of the People’s Bank island wide.

    The funds required for making compensations to approximately 147,000 depositors whose eligibility has been confirmed by The Finance Company PLC have already been allocated from the SLDILSS.

  • Suspension of Business of “ETI Finance Ltd and Swarnamahal Financial Services PLC”

    The Monetary Board (MB) of the Central Bank of Sri Lanka (CBSL) at its meeting held on 10th July 2020 has decided to suspend business of ETI Finance Ltd (ETIF) and Swarnamahal Financial Services PLC (SFSP), in terms of Section 31 of the Finance Business Act, No. 42 of 2011 (FBA) with effect from 13th July 2020.

    ETIF and SFSP have become insolvent due to various irregularities taken place, since 2011. Due to the inability of Board of Directors and Senior Management of the respective companies to satisfactorily address the said deficiencies, the MB on 02nd January 2018 issued Directions restricting the affairs of the Companies and the powers of the Board of Directors of the two Companies. A Panel of Management was also appointed by the MB to oversee the affairs of both Companies.

  • Further Measures to Encourage Opening of Special Deposit Accounts

    The Government of Sri Lanka introduced the Special Deposit Account (SDA) on 08.04.2020 to seek assistance for the national effort to overcome the effects of COVID-19 outbreak in the country. It is encouraging to note that there is a favorable response on the same and so far, Sri Lanka has received USD 87 mn (approx.) into SDAs.

    The Government of Sri Lanka in consultation with the Monetary Board of the Central Bank of Sri Lanka has taken further measures to encourage opening of SDAs as stated below.

  • Central Bank approved more than Rs. 60 billion working capital loans to COVID-19 affected businesses

    The Central Bank of Sri Lanka (CBSL) approved 22,306 loans amounting to Rs. 60,250 million under the Saubagya COVID-19 renaissance facility as of 10th July 2020 with the approval given for 2,066 new loans, amounting to Rs. 6,978 million during the week ended on 10th July 2020. The licensed banks had already disbursed Rs. 30,528 million among 13,333 borrowers island-wide as of 9th July 2020. 

  • Monetary Policy Review - July 2020

    The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 08 July 2020, decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points each, to 4.50 per cent and 5.50 per cent, respectively. The Board arrived at this decision with a view to inducing a further reduction in market lending rates, thereby encouraging the financial system to aggressively enhance lending to productive sectors of the economy, which would reinforce support to COVID-19 hit businesses as well as to the broader economy, given conditions of subdued inflation.

Pages

more

About

More Services

Useful Sites

Follow Us