• Sri Lanka Purchasing Managers’ Index - October 2020

    Purchasing Managers' Indices for both Manufacturing and Services activities contracted in October 2020.

    Manufacturing activities indicate subdued performance in October 2020 due to adverse impacts of the second wave of COVID-19 pandemic erupted in the country in early October. Accordingly, manufacturing PMI declined to 40.3 in October 2020 with a significant decline in Production, New Orders, Employment, and Stock of Purchases sub-indices, particularly in the manufacturing of wearing apparel and food & beverages sectors.

  • NCPI based Inflation decreased in October 2020

    Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) decreased to 5.5 per cent in October 2020 from 6.4 per cent in September 2020. This was due to the statistical effect of the high base prevailed in October 2019. Meanwhile, Food inflation (Y-o-Y) decreased to 10.6 per cent in October 2020 from 12.7 per cent in September 2020, whereas Non-food inflation (Y-o-Y) increased marginally to 1.5 per cent in October 2020 from 1.4 per cent in September 2020.

  • Uninterrupted Operations of the Central Bank of Sri Lanka to Continue

    The Central Bank of Sri Lanka wishes to inform the public that one of its employees was tested positive for COVID-19 on 19 November 2020. The employee is now under medical care.

    Acting swiftly following this incident, the Central Bank implemented all necessary measures to prevent contagion, including rigorous sanitisation and disinfection of its Head Office premises, tracing close contacts and arranging PCR testing for possible contacts. All other employees tested were found to be negative for the virus. As a precautionary measure, senior management of the Bank, who functioned physically from the Bank premises thus far, also decided to work from home for a period of two weeks commencing 20 November 2020.

  • Issuance of Sri Lanka Development Bonds (SLDBs)

    Sri Lanka Development Bonds (SLDBs) are offered by the Government of Sri Lanka and denominated in United States Dollars (USD). The most recent SLDB auction heldfrom 10-13 November 2020 with settlement on 18.11.2020 enabled to raise USD 24.82 million. At the said auction,maturities offered varied from 1 year 2 months to 4 years 2 monthsand offered at a fixed rateof 6.69 per cent to 6.82 per cent.

  • Debt Moratorium for COVID - 19 Affected Businesses and Individuals

    With a view to meeting the challenges faced by businesses and individuals due to the second wave of COVID-19, the Central Bank of Sri Lanka (CBSL) has required licensed banks to extend a debt moratorium to COVID-19 affected businesses and individuals for a maximum period of six months commencing from 01 October 2020. Eligible borrowers may request for the moratorium on or before 30 November 2020. The salient features of the scheme are as follows:

  • External Sector Performance - September 2020

    Sri Lanka’s external sector recovered further in September 2020, supported by the continued improvement in the trade deficit, a notable increase in workers’ remittances and the resultant stability in the domestic foreign exchange market. The trade deficit improved in September 2020, compared to a year earlier, with a more than expected rebound in merchandise exports and a reduction in merchandise imports during the month. In September 2020, workers’ remittances, recorded the highest year-on-year growth since end 2011. In the financial account, the government securities market recorded a marginal foreign investment inflow during the month, while the Colombo Stock Exchange (CSE) recorded outflows. Net inflows to the domestic foreign exchange market eased the pressure on the exchange rate and enabled the Central Bank to absorb foreign exchange, on a net basis, to build up gross official reserves. Reflecting these developments, the Sri Lankan rupee appreciated during the month of September 2020.

  • Central Bank Extends the Grace Period of 4% Working Capital Loan Scheme from 6 Months to 9 Months

    Having identified the national importance of revamping the businesses affected by COVID-19 pandemic, the Central Bank of Sri Lanka (CBSL), in consultation with the Government of Sri Lanka, implemented Saubagya COVID-19 Renaissance Loan Scheme Facility in 3 phases to provide working capital loans at the interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6-months.

  • The Central Bank publishes 'Recent Economic Developments: Highlights of 2020 and Prospects for 2021'

    Today, the Central Bank of Sri Lanka released its report on “Recent Economic Developments: Highlights of 2020 and Prospects for 2021”. The Report can be downloaded from the website of the Central Bank of Sri Lanka in all three languages.*

    In addition to the regular update on economic developments, the Report also presents an update to the medium term macroeconomic projections published by the Central Bank in April 2020, taking into account the information available up to mid-October 2020. The publication of the Report this year comes at a crucial juncture as the economy continues to navigate through multipronged socio-economic challenges and uncertainties caused by the COVID-19 pandemic.

  • Cancellation of the Licence issued to Axis Bank Limited (Axis Colombo Branch) based on the request made by the Axis Bank Limited, India

    The Monetary Board of the Central Bank of Sri Lanka, having considered the request made by the Axis Bank Limited, India consequent to a policy decision taken in 2019 on its global operations, has granted approval to close down business operations of Axis Bank Limited in Sri Lanka and cancel the licence issued to it in terms of the provisions of the Banking Act, No. 30 of 1988, subject to several terms and conditions.

    Upon the Director of Bank Supervision being satisfied with Axis Bank Limited complying with the terms and conditions imposed by the Monetary Board, the licence issued to Axis Bank Limited to carry on banking business, will be cancelled with effect from 30 October 2020.

  • CCPI based Inflation remained unchanged at 4 per cent in October 2020

    Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), remained unchanged at 4.0 per cent in October 2020 due to the statistical effect of the high base prevailed in October 2019. Meanwhile, Food inflation (Y-o-Y) decreased to 10.0 per cent in October 2020 from 11.5 per cent in September 2020, whereas Non-food inflation (Y-o-Y) increased to 1.3 per cent in October 2020 from 0.9 per cent in September 2020.

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