Land Valuation Indicator (LVI) for Colombo District recorded 236.8 during the second half of 2024, with a year-on-year increase of 7.7 per cent. All sub indicators of LVI, namely, Residential, Commercial, and Industrial LVIs contributed to this increase, recording annual increases of 9.9 per cent, 9.4 per cent, and 3.9 per cent, respectively. On a semi-annual basis, LVI and its sub indicators increased at a slower pace during the second half of 2024 compared to the values recorded in the first half of 2024. The highest increase was observed in the Residential LVI, followed by Commercial and Industrial LVIs.
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Land Valuation Indicator – Second Half of 2024
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Use of the Word ‘Finance’ in Contravention of the Provisions of the Finance Business Act, No. 42 of 2011
The public is hereby informed that, as per Section 10(2) of the Finance Business Act, No. 42 of 2011 (the Act), no person, other than a finance company and an institution specified in Section 10(6) of the Act, shall use the terms ‘finance’, ‘financing’, or ‘financial’ alone or in combination with another word or any of its derivatives or its transliterations or their equivalents in any language, as part of the name or the description or the business name of such person without prior written approval of the Central Bank of Sri Lanka.
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SL Purchasing Managers’ Index (PMI) – January 2025
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in January 2025.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 59.0 in January 2025, indicating a further expansion in manufacturing activities. All sub-indices contributed positively to this improvement.
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The Central Bank of Sri Lanka releases the Monetary Policy Report – February 2025
The Central Bank released its first Monetary Policy Report for 2025 in keeping with the requirements of the Central Bank of Sri Lanka Act, No. 16 of 2023. The Monetary Policy Report is published biannually, and the content of the current Report is based on information, which the Monetary Policy Board of the Central Bank considered in formulating the monetary policy decision during the January 2025 review.
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Appointment of a High-Level Task Force on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) and Preparations for Sri Lanka’s Third Mutual Evaluation on AML/CFT Framework
Sri Lanka’s third Mutual Evaluation on the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework coordinated by the Asia Pacific Group on Money Laundering (APG) is set to begin in the near future. During this upcoming Mutual Evaluation, Sri Lanka is required to demonstrate Technical Compliance with the 40 Recommendations of the Financial Action Task Force (the global policy setter on AML/CFT) and their effective implementation through 11 Immediate Outcomes.
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CCPI-based headline inflation continued to remain in the negative territory in January 2025
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) remained in the negative territory for the fifth consecutive month, recording a deflation of 4.0% in January 2025 compared to the deflation of 1.7% in December 2024.
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External Sector Performance - December 2024
The External Sector of the Sri Lankan economy improved notably in 2024, with the robust inflows to the current account for the second consecutive year and strengthened reserves.
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SL Purchasing Managers’ Index (PMI) for Construction Industry – December 2024
Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction), as reflected by the Total Activity Index, stood at 51.4 in December 2024, indicating a continued expansion in construction activities. However, most survey respondents emphasised the need for more large-scale construction projects to sustain the industry growth.
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The Central Bank of Sri Lanka maintains the Overnight Policy Rate (OPR) at the current level
The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on 28 January 2025, decided to maintain the Overnight Policy Rate (OPR) of the Central Bank at its current level of 8.00 per cent. The Board arrived at this decision following a careful analysis of the current and expected macroeconomic developments on the domestic and global fronts. This decision was made with a medium-term view of ensuring that inflation converges to the target of 5 per cent, while supporting the economy to reach its potential. The Board observed that the current period of deflation, as projected earlier, has largely been an outcome of administratively determined energy price reductions. This trend is expected to continue over the next few months before inflation begins adjusting towards the targeted level in the second half of 2025.
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Report on the Deviation of Headline Inflation from the Inflation Target Set Out in the Monetary Policy Framework Agreement
In terms of Section 26(5) of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBA), if the Central Bank fails to meet the inflation target set out in the Monetary Policy Framework Agreement (MPFA) by a margin specified in the same for two consecutive quarters, the Monetary Policy Board is required to submit a report to Parliament through the Hon. Minister of Finance, which shall also be made available to the public. The MPFA signed between the Hon. Minister of Finance and the Central Bank, on 03 October 2023, stipulates the inflation target as 5 per cent and specifies the margin for the purpose of Section 26(5) of the CBA as ±2 percentage points.