• Provincial Gross Domestic Product (PGDP) - 2023

    Western Province held onto its dominant economic position despite a slight decline in share..

    Western province accounted for the largest share (43.7 per cent) of Sri Lanka's nominal GDP in 2023, although this indicated a marginal decline in its contribution compared to the previous year. The dominant role of the Western province was particularly evident across the Industry and Services sectors. Meanwhile, North Western (10.9 per cent) and Central provinces (10.3 per cent) remained the closest contenders, securing the second and third positions, respectively.

  • Progress on Combating Prohibited Schemes under Section 83(C) of the Banking Act No 30 of 1988, as amended

    The Central Bank of Sri Lanka (CBSL) has taken proactive measures to address the alarming increase in prohibited schemes, which poses risks to the financial system stability and protection of the general public from such schemes. These initiatives include conducting investigations under Section 83C(3) of the Banking Act to determine whether individuals or entities have contravened or are likely to contravene the provisions of Section 83C(1) of the Banking Act.

  • SL Purchasing Managers’ Index (PMI) – November 2024

    Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in November 2024.

    Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 53.3 in November 2024. This indicates an expansion in manufacturing activities on a month-on-month basis, with positive contributions from all the sub-indices.

  • The Central Bank of Sri Lanka holds its 13th International Research Conference

    The Central Bank of Sri Lanka held its flagship research event, the 13th International Research Conference, on 13 December 2024 at the John Exter International Conference Hall of the Central Bank. The Conference aimed at stimulating innovative theoretical and empirical research on various contemporary macroeconomic policy issues. It provided researchers from diverse backgrounds a platform to discuss their views, findings, and experiences from varied perspectives. This year’s Conference marked a significant milestone as it was held for the first time since 2019, following a hiatus due to the COVID-19 pandemic and the subsequent economic crisis faced by the country.

  • Shaping the future of Sri Lanka's domestic foreign exchange market with the FX Global Code

    As enunciated in the Central Bank’s Annual Policy Statement in January 2024, the domestic foreign exchange (FX) market, mainly comprising the Central Bank of Sri Lanka (CBSL), all Licensed Commercial Banks (LCBs) and the National Savings Bank (NSB), has successfully adopted the FX Global Code (FXGC), thereby adhering to a common set of guidelines to further promote the integrity and effective functioning of the domestic FX market. The adoption of FXGC in the domestic FX market, which stems from an initiative taken by the CBSL and the support from the Sri Lanka Forex Association (SLFA), marks a significant advancement in the domestic FX market.

  • External Sector Performance - October 2024

    The external sector continued its positive momentum in October 2024, supported by robust inflows to the current account, resulting in an increase in reserves and an appreciation of the Sri Lanka rupee.

  • CCPI-based headline inflation continued to remain in the negative territory in November 2024

    In line with the Central Bank’s near term projections, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 remained in the negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024 compared to the deflation of 0.8% in October 2024.

  • SL Purchasing Managers’ Index (PMI) for Construction Industry – October 2024

    Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction) rebounded in October 2024, recording a Total Activity Index value of 54.3. Many respondents mentioned that the operations in construction projects regained momentum in October, following the resolution of election-related uncertainties.

  • The Central Bank of Sri Lanka introduces the Overnight Policy Rate and further eases its monetary policy stance

    The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on 26 November 2024, decided to further ease the monetary policy stance and set the newly introduced Overnight Policy Rate (OPR) at 8.00 per cent. With this change, the effective reduction in the policy interest rate would be around 50 basis points from the current level of the Average Weighted Call Money Rate (AWCMR), which continues to serve as the operating target of the Flexible Inflation Targeting ( FIT) framework.

  • The Central Bank of Sri Lanka implements a Single Policy Interest Rate Mechanism by Introducing the Overnight Policy Rate

    As announced in the Central Bank’s Annual Policy Statement in January 2024 and the subsequent announcement in September 2024 of the planned implementation of the single policy interest rate mechanism, the Monetary Policy Board of the Central Bank of Sri Lanka decided to implement a single policy interest rate mechanism transitioning from its dual policy interest rate mechanism, with effect from 27 November 2024. This marks another significant improvement in the Flexible Inflation Targeting (FIT) framework implemented by the Central Bank. Accordingly, the Central Bank introduces the Overnight Policy Rate (OPR), as its primary monetary policy tool to signal and operationalise its monetary policy stance. The OPR will be periodically reviewed and adjusted as needed by the Central Bank to indicate and communicate a change in its monetary policy stance. This transition is expected to enhance the efficiency and effectiveness of monetary policy signalling and transmission to the financial markets and the broader economy.

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