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 (DCS), decreased to 7.3 per cent in December 2017 from 8.4 per cent in November 2017, on year-on-year basis. This decrease is due to the high base prevailed in December 2016.
The change in the NCPI measured on an annual average basis increased from 7.5 per cent in November 2017 to 7.7 per cent in December 2017.
The Manufacturing Sector PMI recorded 59.1 in December which is a marginal increase of 0.3 index points compared to November 2017. This indicates that the Manufacturing activities expanded at a higher pace in December compared to November 2017. This was mainly driven by the increase in the Production sub-index. Further, Stock of Purchases and Employment sub-indices also expanded at a higher pace while New Orders sub-index expanded, albeit at a slower rate, during the month as compared to November 2017. Meanwhile, the Suppliers’ Delivery Time sub-index lengthened at a higher rate compared to previous month. Overall, all the sub-indices of PMI recorded values above the neutral 50.0 threshold signalling an overall expansion in December 2017. Moreover, The Expectation for activities indicates an improvement for the next three months.
There has been a call for an immediate statement from the Central Bank of Sri Lanka on whether there have been any irregularities in the issuing of government securities during the period 2008-2014.
In this connection, attention is drawn to the Statement issued by the Monetary Board of the Central Bank of Sri Lanka on 11th January 2018. The last paragraph, therein indicates that a forensic audit would be conducted. The audit will focus on government securities and EPF operations during the period 2008-2014. This would be conducted by an external party. It is not appropriate to make any statement in this regard prior to the conclusion of the forensic audit.
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, 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.
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.
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.
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.
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.
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.
