Purchasing Managers' Indices for both Manufacturing and Services activities expanded further in November 2021.
Benefitting from the normalising of economic activities in the country, the Manufacturing PMI continued to expand in November 2021 and recorded an index value of 61.9.
Services sector PMI registered an index value of 62.1 indicating a further solid performance in November 2021.
“COVID – 19 Healthcare and Social Security Fund” that has been established by His Excellency President Gotabaya Rajapaksa to strengthen the mitigation activities aimed at controlling the spread of COVID-19 virus in the country and related social welfare programme, have been vested with a set of wide responsibilities. Local as well as foreign donors can make their financial contributions to the “COVID – 19 Healthcare and Social Security Fund”.
The Governor of the Central Bank of Sri Lanka, Hon. Ajith Nivard Cabraal, in his capacity as the Chairman of the “COVID – 19 Healthcare and Social Security Fund”, accepted the generous donation of Rs. 50.0 million to the “COVID – 19 Healthcare and Social Security Fund” from Mr. Nandi Anthony, General Manager, CRIB.
In response to several complaints that certain Authorized Money Changers are engaged in activities which are not in compliance with the Directions issued under the provisions of the Foreign Exchange Act No. 12 of 2017 (FEA), the Central Bank is conducting a series of spot examinations at the places of Authorized Money Changers, thereby strengthening the monitoring and supervision of the Authorized Money Changers.
In the spot examinations conducted during the months of November and December 2021, it was revealed that the following Authorized Money Changers have not complied with the Directions issued to them under the provisions of FEA. Accordingly, after the Minister of Finance being informed, Notices have been issued to them to comply with the relevant Directions, within a specified time period.
The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to pay an incentive of Rs. 8.00 per US dollar for workers’ remittances, in addition to the existing incentive of Rs.2.00 under the “Incentive Scheme on Inward Workers’ Remittances”, when such funds are remitted through Licensed Banks (LBs) and other internationally accepted formal channels and converted into Sri Lankan rupees during the period from 01.12.2021 to 31.12.2021.
Accordingly, the total incentive for inward workers’ remittances converted into Sri Lankan rupees during the month of December 2021 will be Rs. 10.00 per US dollar.
The Central Bank of Sri Lanka (CBSL), on behalf of the Government of Sri Lanka (GOSL) requested proposals from international investor community on 12 November 2021 for the arrangement of a medium-term foreign currency financing facility by securitising the foreign currency receipts of the Central Bank of Sri Lanka under the mandatory sale of ten (10) per cent of workers’ remittances converted into Sri Lankan Rupees by licensed banks. The deadline for submitting responses was 15.00 hrs on 30 November 2021.
Accordingly, there were seven (7) responses, among which there were five (5) leading international banks and two (2) established investment arrangers.
These responses are being reviewed to determine the most suited modality to initiate the securitised financing arrangement.
Headline inflation, as measured by the year-onyear (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), increased to 9.9 per cent in November 2021 from 7.6 per cent in October 2021. Meanwhile, the CCPI measured on an annual average basis, increased to 5.3 per cent in November 2021 from 4.8 per cent in October 2021.
Inflation was driven by monthly increases of prices of items in both Food and Non-food categories. Subsequently, Food inflation (Y-o-Y) increased to 17.5 per cent in November 2021 from 12.8 per cent in October 2021, while Non-food inflation (Y-o-Y) increased to 6.4 per cent in November 2021 from 5.4 per cent in October 2021.
The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 24 November 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 5.00 per cent and 6.00 per cent, respectively. The Board arrived at this decision after carefully considering the macroeconomic conditions and expected developments on the domestic and global fronts. The Board noted the recent acceleration of inflation, driven mainly by supply disruptions and the surge in global commodity prices, and reiterated its commitment to maintaining inflation at the targeted levels over the medium term with appropriate measures, while supporting the economy to reach its potential in the period ahead.
Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100), increased to 8.3 per cent in October 2021 from 6.2 per cent in September 2021. This was driven by monthly increases of prices of items in both Food and Non-food categories. Meanwhile, Food inflation (Y-o-Y) increased to 11.7 per cent in October 2021 from 10.0 per cent in September 2021, while Non-Food inflation (Y-o-Y) also increased to 5.4 per cent in October 2021 from 3.0 per cent in September 2021.
The NCPI, measured on an annual average basis, increased to 5.7 per cent in October 2021 from 5.5 per cent in September 2021.
The Monetary Board, at its meeting held on 17th November 2021 has promoted Mr. K G P Sirikumara, Mr. D Kumaratunge, Mrs. U L Muthugala, and Mr. C P S Bandara to the post of Assistant Governor with effect from 17th November 2021.
Purchasing Managers' Indices for both Manufacturing and Services activities expanded in October 2021.
Indicating a strong revival in manufacturing activities in the country, the manufacturing PMI reached a 7-month high at 60.4 in October 2021.
Services PMI increased to 57.9 in October 2021 underpinned by the increases in New Businesses, Business Activities and Expectations for Activity sub-indices.
