• Statement by the Monetary Board of the Central Bank of Sri Lanka

    Statement by the Monetary Board of the Central Bank of Sri Lanka (CBSL) relating to the Recommendations of the Commission of Inquiry to Investigate, Inquire and Report on the Issuance of Treasury Bonds (COI) during the period from 1st February 2015 to 31st March 2016 and measures taken to improve the management and control of the Public Debt and the Employees’ Provident Fund.

    On 10, January 2018 the Secretary to the President, handed over a copy of the report of the Commission of Inquiry to Investigate, Inquire and Report on the Issuance of Treasury Bonds (COI) during the period from 1st February 2015 to 31st March 2016 to Governor, Central Bank of Sri Lanka entrusting the task of considering giving effect to the recommendations contained in the Report.

  • Inflation in July 2016

    Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics, decreased to 5.8 per cent in July 2016 from 6.4 per cent in June 2016, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in July 2016.

    The change in the NCPI measured on an annual average basis increased to 3.4 per cent in July 2016 from 3.1 per cent in June 2016.

  • Extension of the Suspension of Business of Perpetual Treasuries Limited

    The Monetary Board of the Central Bank of Sri Lanka on 04th January 2018, 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 period of six months with effect from 4.30 p.m. on 05th January 2018, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

  • Monetary Policy Review - August 2016

    Both headline and core inflation, measured on a year-on-year basis, edged down in July 2016. The normalisation observed in domestic supply conditions as well as the suspension of the revisions made to certain taxes moderated consumer price inflation. However, the underlying upward trend in inflation, as reflected in annual average price changes, appears to have continued thus far during the year.

  • Road Map 2018 - Monetary and Financial Sector Policies for 2018 and Beyond

    The year 2017 was challenging. We have seen economy-wide effects due to inclement weather conditions. The drought and floods disturbed agriculture activities and agro based industrial activities. Spillover effects of these adverse weather conditions impacted the other sectors of the economy as well. As a result, economic growth is expected to be subdued and lower than we projected at the beginning of the year. The tight monetary policy stance of the Central Bank as well as the relatively tight fiscal policy stance of the government, which were adopted with the aim of regaining macroeconomic stability, partly affected public and private investment spending that also contributed to low economic growth.

  • Regulatory action taken by the Central Bank of Sri Lanka on ETI Finance Ltd and Swarnamahal Financial Services PLC

    The Monetary Board of the Central Bank of Sri Lanka at its meeting held on 01.01.2018, having considered the weak financial performances of the ETI Finance Ltd. (ETIF) and Swarnamahal Financial Services PLC (SFSP) with a view to safeguard the interests of the depositors and other creditors of the two companies, and to ensure safety and soundness of the financial system, decided to take the following regulatory actions, as a temporary measure, under the provisions of the Finance Business Act No. 42 of 2011, with immediate effect.

  • Willful Mutilation, Alteration and Defacement of Sri Lanka Currency Notes

    Central Bank of Sri Lanka (CBSL) in considering the immense requests from the general public and the difficulties that the general public is facing in exchanging willfully defaced currency notes at Licensed Commercial Banks (LCBs), has decided to extend the time period for such exchange of currency notes at LCBs up to 31 March 2018.

    Mutilation, alteration or defacement of currency notes is an offence under the Monetary Law Act (MLA) No. 58 of 1949, and is punishable by imprisonment or fine or both. Under the Regulation E of MLA, no claim in respect of the willfully mutilated or altered notes shall be entertained and such notes shall be retained by the CBSL.

    The holder of these currency notes will have to suffer the loss of face value of such notes effective from 1 April 2018.

  • External Sector Performance - October 2017

    The external sector exhibited a significant improvement in October 2017, with a notable decline in the trade deficit and continued inflows to the financial account of the Balance of Payment (BOP). Higher export earnings, which recorded a double digit growth for the fourth consecutive month, and a deceleration in import expenditure resulted in a significant year-on-year decline in the trade deficit in October. However, earnings from tourism increased moderately, while workers’ remittances further declined, owing to adverse economic and geopolitical conditions prevailing in the Middle Eastern region. Inflows to the financial account of the BOP continued during the month amidst increased foreign investments in the Colombo Stock Exchange (CSE) and the government securities market.

  • Monetary Policy Review - No. 8 of 2017

    Considering recent macroeconomic developments, the Monetary Board, at its meeting held on 27 December 2017, was of the view that the current monetary policy stance is appropriate and decided to maintain the policy interest rates of the Central Bank of Sri Lanka at their present levels. However, the Central Bank will continue to cautiously monitor the developments in the economy and take necessary policy actions, if warranted.

    The key sectoral developments considered in arriving at the decision by the Monetary Board are discussed below.

  • Proceeds from China Merchant Port Holdings Co. Ltd Received on Account of Handing Over of Operations of Hambantota Port

    Subsequent to the agreement signed between Sri Lanka Ports Authority and the China Merchant Port Holdings Co. Ltd., US $ 292.1 mn has been credited to the US Dollar account of Government of Sri Lanka maintained at the Central Bank of Sri Lanka.

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