• NCPI based Inflation increased in April 2021

    Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100), increased to 5.5 per cent in April 2021 from 5.1 per cent in March 2021. This was mainly due to the statistical effect of the low base prevailed in April 2020. Meanwhile, Food inflation (Y-o-Y) increased to 9.7 per cent in April 2021 from 8.8 per cent in March 2021 and Non-Food inflation (Y-o-Y) increased to 2.2 per cent in April 2021 from 2.0 per cent in March 2021.

    The NCPI, measured on an annual average basis, remained unchanged at 5.3 per cent in April 2021.

  • Arrangements to Provide Services of Employees’ Provident Fund Department of the Central Bank of Sri Lanka Remotely/ Regionally due to Travel Restrictions in the Country

    Arrangements have been made to provide the services of Employees' Provident Fund Department (EPF) by post, e-mail, internet or through the branches of commercial banks due to the travel restrictions imposed in the country without requiring the member to visit the head office in Colombo and regional offices of the Central Bank to obtain the respective services.

  • The Central Bank of Sri Lanka Continues its Accommodative Monetary Policy Stance to Support the Sustained Recovery of the Economy

    The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 19 May 2021, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 4.50 per cent and 5.50 per cent, respectively. The Board arrived at this decision after carefully considering the macroeconomic conditions and expected developments on the domestic and global fronts. In the context of the prevailing low inflation environment and well anchored inflation expectations, and the renewed challenges posed by the third wave of the COVID-19 pandemic, the Board remains committed to maintaining the current accommodative monetary policy stance to support the sustained revival of the economy.

  • Imposition of Penalties to Enforce Compliance on Financial Institutions during the First Quarter of 2021 by the Financial Intelligence Unit (FIU)

    By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. The penalty may be prescribed taking into consideration the nature and gravity of relevant non- compliance of the Financial Institution or the Designated Non-Finance Business.

    Accordingly, as the regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) in the country, the FIU imposed penalties, totaling to Rs. 4.0 million for the period from 1 January 2021 to 31 March 2021 to enforce compliance on Financial Institutions.

  • External Sector Performance - March 2021

    Sri Lanka’s external sector showed a mixed performance in March 2021 with a widened trade deficit on the one hand, and a healthy growth in workers’ remittances and a slight pickup in the tourism sector on the other. The deficit in the trade account widened in March 2021, for the first time since April 2020. Both exports and imports were significantly higher in March 2021, compared to March 2020 as well as February 2021. However, workers’ remittances grew steadily, and the tourism sector continued the recovery process, albeit at a very slow pace. In the financial account, both foreign investment in the government securities market and the Colombo Stock Exchange (CSE) continued to record marginal net outflows in March 2021 as well. The Sri Lankan rupee depreciated against the US dollar during the month, partly reflecting the seasonal demand for imports.

  • Sri Lanka Purchasing Managers’ Index - April 2021

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

    Following the seasonal pattern, manufacturing PMI contracted to 44.3 in April 2021 with a decline of 22.7 index points from March 2021.

    Services PMI dropped to 48.9 in April 2021, reversing the growth momentum observed in the Services sector for four straight months.

  • Payment of Additional Compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme to the depositors of Swarnamahal Financial Services PLC (SFSP)

    The Central Bank of Sri Lanka wishes to inform the eligible depositors/relevant legal beneficiaries of eligible deposits of Swarnamahal Financial Services PLC (SFSP) that the payment of additional compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme will commence from 10.05.2021 onwards. Accordingly, the eligible depositors/relevant legal beneficiaries of eligible deposits can collect their claims from any People’s Bank branch commencing from 10.05.2021 by producing the relevant documents. The eligible depositors/beneficiaries are advised to avoid gathering in large numbers at the People’s Bank premises and to strictly comply with the health guidelines.

  • CCPI based Inflation decreased to 3.9 per cent in April 2021

    Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) decreased to 3.9 per cent in April 2021 from 4.1 per cent in March 2021. This was driven by monthly decreases of prices of items in the Food category. Meanwhile, Food inflation (Y-o-Y) decreased to 9.0 per cent in April 2021 from 9.6 per cent in March 2021, while Non-food inflation (Y-o-Y) remained unchanged at 1.8 per cent in April 2021.

    The change in the CCPI measured on an annual average basis decreased marginally to 3.9 per cent in April 2021 from 4.0 per cent in March 2021.

  • The Central Bank of Sri Lanka Releases its Annual Report for the Year 2020

    In terms of Section 35 of the Monetary Law Act No. 58 of 1949, the seventy first Annual Report of the Monetary Board of the Central Bank of Sri Lanka was presented to Hon. Mahinda Rajapaksa, the Prime Minister and the Minister of Finance, by Deshamanya Professor W D Lakshman, the Governor of the Central Bank of Sri Lanka.

  • Revised Regulations Issued Under the Foreign Exchange Act, No.12 of 2017

    Regulations issued under the Foreign Exchange Act, No. 12 of 2017 (FEA) have been revised for further simplification and clarity improvement, with the objectives of achieving greater efficiency in the conduct of cross-border foreign exchange transactions alongside further facilitating economic activities of the stakeholders through greater convenience of doing business.

    These revised foreign exchange policy framework as highlighted above, has been implemented with effect from 22 March 2021. Inter-alia, key highlights of policy measures so introduced, are as follows.

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