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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CCPI based headline inflation further accelerated as expected towards the target in October 2025
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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.
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External Sector Performance – September 2025
Sri Lanka’s external sector recorded a monthly current account deficit in September 2025, following consecutive monthly current account surpluses registered during January-August 2025. However, cumulative current account surplus for the first nine months is estimated at USD 1.9 billion.
The merchandise trade deficit recorded a year-on-year expansion in September 2025, as import expenditure exceeded USD 2 billion, primarily driven by a surge in vehicle imports.
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Appointment of New Deputy Governors of the Central Bank of Sri Lanka
In terms of the provisions in the Central Bank of Sri Lanka Act, No. 16 of 2023, Hon. Minister of Finance, as recommended by the Governing Board, has appointed Dr. C Amarasekara, Assistant Governor, and Mr. K G P Sirikumara, Assistant Governor, as Deputy Governors of the Central Bank of Sri Lanka with effect from 24.10.2025 and 03.11.2025, respectively.
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Sri Lankan Delegation Engaged in High-Level Meetings at the 2025 World Bank Group/ International Monetary Fund Annual Meetings, and Governor was Honoured with “A Grade” Award by Global Finance Magazine
The Sri Lankan delegation, led by Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), actively participated in a series of high-level bilateral and multilateral meetings during the 2025 World Bank Group/ International Monetary Fund (IMF) Annual Meetings in Washington, D.C., during October 13–18, 2025.
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SL Purchasing Managers’ Index (PMI) – September 2025
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in September 2025.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.4 in September 2025, indicating an expansion in manufacturing activities. All sub-indices, except for Employment, remained above the neutral threshold during the month.
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Appointment of a New Member to the Governing Board of the Central Bank of Sri Lanka
His Excellency the President of the Democratic Socialist Republic of Sri Lanka has appointed Mr. Maithri Evan Wickremesinghe, P.C. as a member of the Governing Board (GB) of the Central Bank of Sri Lanka (CBSL) with effect from 02.10.2025. In terms of the provisions of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBSL Act), GB has been established as the body responsible for overseeing the administration and management of the affairs of CBSL and determination of the general policies of CBSL. Further, in terms of Section 12 (1) (b) of the CBSL Act, the members of GB will be members of the Monetary Policy Board, as well.
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IMF Staff Reaches Staff-Level Agreement on the Fifth Review Under Sri Lanka’s Extended Fund Facility Arrangement
An International Monetary Fund (IMF) team led by Mr. Evan Papageorgiou, visited Colombo from 24 September to 09 October 2025, for the Fifth Review under Sri Lanka’s Extended Fund Facility Arrangement. Upon reaching the staff-level agreement on the Fifth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility, the IMF issued the following press release on 09 October 2025, which can be accessed from the link below.
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The Central Bank of Sri Lanka Releases the Financial Stability Review for the Year 2025
In terms of Section 70(1) of the Central Bank of Sri Lanka Act, No. 16 of 2023, the Central Bank of Sri Lanka released its annual Financial Stability Review (FSR) for 2025. This statutory report provides an assessment of the stability of the financial system, identifies and evaluates the associated risks and vulnerabilities, and outlines the policy measures implemented by the Central Bank and other regulatory authorities. In addition, a summary report of the FSR 2025 is also published. The report generally covers data up to end June 2025. The electronic version of the publication can be accessed through the Central Bank website.
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External Sector Performance – August 2025
Sri Lanka’s external sector continued to strengthen in August 2025, as the current account maintained its streak of monthly surpluses.
The merchandise trade deficit narrowed in August 2025 compared to August 2024, reflecting a higher growth in exports than imports.