The Central Bank of Sri Lanka (CBSL), in view of the adverse effects of the recent cyclonic and flood disasters, having considered the proposals of the Sri Lanka Banks’ Association (Guarantee) Ltd. (SLBA) and the need to grant effective relief to those affected without unduly compromising financial system stability, issued the Circular No. 04 of 2025 dated 05.12.2025 to all licensed banks to provide the relief measures to the individuals and businesses whose income or business has been directly affected (hereinafter referred to as borrowers).
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Relief Measures to Assist Individuals and Businesses affected by the Recent Cyclonic and Flood Disasters by Licensed Banks
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CCPI based headline inflation remained unchanged in November 2025
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained unchanged at 2.1% in November 2025, compared with the previous month.
Food inflation (Y-o-Y) decelerated to 3.0% in November 2025 from 3.5% recorded in October 2025, whereas Non-Food inflation (Y-o-Y) accelerated to 1.7% in November 2025 from 1.4% recorded in October 2025.
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External Sector Performance – October 2025
Sri Lanka’s external sector recorded a current account deficit in October 2025 for the second consecutive month. However, the cumulative current account surplus for the first ten months of 2025 is estimated at around US dollars 1.7 billion.
The merchandise trade deficit widened year-on-year in October 2025, mainly due to a notable increase in imports.
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Sri Lanka PMI - Construction continued to expand in October 2025
The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, recorded a value of 64.3 in October 2025. This high reading follows last month's peak, indicating a sustained positive outlook for construction activities.
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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 7.75%. The Board arrived at this decision after carefully considering evolving developments and the outlook on both domestic and global fronts. The Board is of the view that the current monetary policy stance will support steering inflation towards the target of 5%.
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Notice to General Public on Prohibited Pyramid Schemes
In terms of Section 83 (C) of the Banking Act, No. 30 of 1988, as amended, the Central Bank of Sri Lanka has conducted an investigation, ascertained and determined that “SGO/sgomine.com” has engaged, conducted and promoted a prohibited scheme.
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SL Purchasing Managers’ Index (PMI) – October 2025
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in October 2025.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded a value of 61.0 in October 2025, reflecting an increase in manufacturing activities. This increase was broad-based, with all sub-indices contributing positively to this expansion.
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Public Consultation on Amendments to the Finance Business Act, No.42 of 2011 (FBA)
Having recognized the need for strengthening the regulation and supervision of Finance Companies (FCs), investigation and prosecution of unauthorized finance business, resolution and winding up of non-viable FCs, the Central Bank of Sri Lanka (CBSL) has proposed amendments to FBA.
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CCPI based headline inflation further accelerated as expected towards the target in October 2025
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) accelerated further in October 2025 indicating a continued convergence towards the inflation target. Accordingly, headline inflation (Y-o-Y) increased to 2.1% in October 2025 from 1.5% in September 2025, in line with the Central Bank’s near-term projections.
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Sri Lanka PMI - Construction increased in September 2025
The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, reached 67.6 in September 2025, recording the strongest increase in activity observed since late 2021. The respondents highlighted that the persistent availability of project opportunities has provided a steady underpinning for growth in the construction sector.