• Inflation Increased in April 2019

    Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100)  increased to 3.6 per cent in April 2019 from 2.9 per cent in March 2019 due to the monthly increases of prices of items in both Food and Non-food categories. Meanwhile, in April 2019, year-on-year Food inflation was -1.2 per cent while Non-food inflation continued its increasing trend for the fourth consecutive month recording a 7.5 per cent in the current month.

    The change in the NCPI measured on an annual average basis increased to 1.9 per cent in April 2019 from 1.7 per cent in March 2019. 

  • Sri Lanka Purchasing Managers’ Index - April 2019

    Manufacturing activities contracted recording the all-time low index value of 41.0 in April 2019 with a decline of 25.9 index points from March 2019. The decline of manufacturing PMI is mainly driven by the significant drop in New Orders and Production especially in manufacturing of food, beverages and tobacco and manufacturing of textiles, wearing apparels, leather and related activities products. This decline was mainly due to the New Year holidays in April and the security concerns that arose following the Easter Sunday attack which affected the smooth functioning of factory operations. Most respondents, especially in textile and apparel sector, highlighted that they had to restrict working hours in factories due to security concerns and were unable to achieve the desired production levels.

  • Regulatory Actions Taken by the Central Bank of Sri Lanka on The Finance Co PLC

    The Monetary Board of the Central Bank of Sri Lanka (CBSL) initiated a number of regulatory actions, as temporary measures, under the provisions of FBA, on The Finance Company PLC (TFC) with effect from 15th February 2019, with a view to safeguard the interests of the depositors and other stakeholders of the company. Regulatory measures include suspension of accepting new deposits, withdrawal of deposits and disbursement of loans and advances to facilitate the restructuring process of TFC.

  • The International Monetary Fund Releases the Sixth Tranche of US Dollars 164.1 Million Under the Extended Fund Facility

    The Executive Board of the International Monetary Fund (IMF) completed the Fifth Review under Sri Lanka’s Extended Fund Facility (EFF) approving the disbursement of the sixth tranche amounting to SDR 118.5 million (approximately US dollars 164.1 million). The Executive Board also approved an extension of the arrangement by one year, until June 2020, and rephased the remaining disbursements.

  • Sale of Subsidiaries Sub-subsidiaries and Investment Properties of ETI Finance Ltd

    The Central Bank of Sri Lanka has taken number of measures on ETI Finance Ltd (ETIF) to address various irregularities taken place since 2011, including severe liquidity constraints faced by the company during the latter part of 2017.

    Considering the extremely vulnerable liquidity position of ETIF and its inability to repay the depositors, the Monetary Board (MB) of the Central Bank of Sri Lanka (CBSL)issued directions on 02.01.2018, restricting the operations of the company. Further, based on a proposal submitted by the company, MB gave its concurences on 21.02.2018 to dispose identified subsidiary, sub-subsidiary companies and investment properties of ETIF for a total consideration of USD 75 mn, with the view of repaying the depositors utilising the sale proceeds.

  • Measures to Reduce Lending Rates and Drive Credit Flows to Small and Medium Enterprises (SMEs) Sector

    The Central Bank of Sri Lanka has observed high interest rates charged on lending products and excessively high interest rates offered on deposit products by licensed commercial banks and licensed specialized banks (licensed banks) and Non-Bank Financial Institutions (NBFIs) despite the measures taken to bring down overnight interest rates and enhance market liquidity through the reduction of Statutory Reserve Ratio (SRR). Especially in the context of well contained inflation and inflation expectations, Sri Lanka’s interest rates in real terms also have been found to be excessive in comparison to other regional economies.

  • The Annual Report of the Central Bank of Sri Lanka for the Year 2018

    The vulnerability of the Sri Lankan economy to global and domestic disturbances became increasingly visible in 2018, with a modest expansion in real economic activity amidst a low inflation environment during the year. Real GDP growth was recorded at 3.2 per cent in 2018, compared to 3.4 per cent in the previous year. This growth was largely supported by services activities that expanded by 4.7 per cent and the recovery in agriculture activities, which recorded a growth of 4.8 per cent. Industry activities slowed down significantly to 0.9 per cent during the year, mainly as a result of the contraction in construction. According to the expenditure approach, both consumption and investment expenditure supported growth.

  • Inflation in March 2019

    Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) increased to 2.9 per cent in March 2019 from 2.4 per cent in February 2019 mainly due to the low base prevailed in the corresponding month of the previous year. Meanwhile, in March 2019, year-on-year Food and Non-food inflation recorded -2.3 per cent and 7.1 per cent respectively.

    The change in the NCPI measured on an annual average basis remained unchanged at 1.7 per cent in March 2019.

  • External Sector Performance - February 2019

    In February 2019, the deficit in the trade account narrowed further to US dollars 451million, recording the lowest monthly trade deficit in more than 5 years.

    The considerable reduction in the trade deficit was due to the notable decline in import expenditure by 27.6 per cent (year-on-year) and increased earnings from exports by 7.2 per cent (year-on-year) in February 2019.

    Earnings from tourism continued its robust performance, registering over 240,000 tourist arrivals per month since December 2018 and recording a growth of 7.0 per cent (year-on-year) in February 2019,

    Workers’ remittances declined by 12.4 per cent (year-on-year) in February 2019, to US dollars 500 million.

  • External Sector Performance - January 2019

    In January 2019, the trade deficit continued its improving trend observed in recent months. The trade deficit was recorded at US dollars 617 million during the month, compared to a deficit of US dollars 701 million in December 2018, and US dollars 1,049 million in January 2018.

    This significant reduction in the trade deficit was due to the combined effect of higher earnings from exports and a notable deceleration in import expenditure. Exports grew by 7.5 per cent while imports declined significantly by 17.8 per cent in January 2019 (year-on-year).

    Tourist arrivals grew by 2.2 per cent (year-on-year) in January 2019, resulting in earnings from tourism of US dollars 458 million during the month.

Pages

more

About

More Services

Useful Sites

Follow Us