• The Central Bank of Sri Lanka Publishes the Market Operations Report – June 2026

    The Central Bank of Sri Lanka (CBSL) released its latest Market Operations Report (MOR) on 31 July 2026. The MOR aims to enhance stakeholder understanding of the monetary and foreign exchange operations undertaken by the CBSL in the pursuit of implementation of monetary policy within the Flexible Inflation Targeting (FIT) framework, supported by the flexible exchange rate regime.

    The latest MOR provides an overview of the policy stance of the CBSL, liquidity conditions, short-term interest rate and exchange rate developments, as well as money market and domestic foreign exchange market operations of the CBSL, with a particular focus on the first half of 2026. The MOR also presents two feature articles on timely topics and includes selected indicators of market operations and transactions. 

    Key Highlights:

  • CCPI-based headline inflation accelerated in July 2026

    The Colombo Consumer Price Index  (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) increased to 7.3% in July 2026 from 6.8% in June 2026, primarily reflecting the adjustment in housing rent in the non-food category and the base effect in food inflation. Meanwhile, food inflation (Y-o-Y) accelerated to 6.3% in July 2026 from 3.6% in June 2026, contributing mainly to the increase in headline inflation, while non-food inflation (Y-o-Y) decelerated to 7.8% in July 2026 from 8.4% in June 2026.

  • External Sector Performance - June 2026

    The external sector continued to reflect the impact of developments in the Middle East, with the monthly current account recording a deficit in June 2026.

  • Sri Lanka PMI - Construction expanded in June 2026

    The Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction), as reflected by the Total Activity Index, increased to 60.0 in June 2026, indicating continued expansion in construction activities. Most survey respondents attributed this increase to the ongoing execution of construction projects awarded in preceding months.

  • The Central Bank of Sri Lanka keeps the Overnight Policy Rate (OPR) unchanged

    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. 

    Renewed tensions in the Middle East have resulted in a surge in global commodity prices, particularly petroleum. These developments are likely to dampen global economic prospects with potential spillovers to the domestic economy through multiple channels.

  • Administrative Penalties imposed by the Financial Intelligence Unit on Reporting Institutions from October 2025 to March 2026

    By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. In terms of the FTRA, the penalty may be prescribed by taking into consideration the nature and gravity of relevant non-compliances of the Institutions.

  • SL Purchasing Managers’ Index (PMI) – June 2026

    Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in June 2026.

    Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 53.0 in June 2026. This indicates continued expansion in manufacturing activities, albeit at a slower pace than the previous month. 

  • Extension of the Suspension of Business of Perpetual Treasuries Limited

    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 July 2026, in order to continue the investigations being conducted by the Central Bank of Sri Lanka. 

  • Extension of the Term of the Administrator Appointed to Nation Lanka Finance PLC under the Banking (Special Provisions) Act, No. 17 of 2023

    The Central Bank of Sri Lanka (CBSL) has extended the tenure of Mr. P W D N R Rodrigo, the Administrator appointed to Nation Lanka Finance PLC (NLFP), under the Banking (Special Provisions) Act, No. 17 of 2023 (BSPA).

  • Nation Lanka Finance PLC - Cancellation of Licence under the Banking (Special Provisions) Act, No.17 of 2023

    The Central Bank of Sri Lanka (CBSL) initiated resolution actions on Nation Lanka Finance PLC (NLFP) effective from 04.07.2025 under the provisions of the Banking (Special Provisions) Act, No. 17 of 2023 (BSPA). This action was taken following NLFP’s continuous violations of the provisions of the Finance Business Act, No. 42 of 2011, despite the implementation of numerous regulatory measures by CBSL. Accordingly, Mr. P W D N R Rodrigo was appointed on the same day as the Administrator to assume full control over all assets, operations and affairs of NLFP, and to carry on the business and affairs of the company in the name and on behalf of the company.

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