The monthly current account recorded surpluses in all months in 2025 up to May, reflecting robust performance of the external sector.
The merchandise trade deficit widened in May 2025 compared to May 2024, reflecting a larger y-o-y growth in imports relative to merchandise exports. However, the trade deficit narrowed compared to April 2025.
Deflation continued to ease in June 2025. Accordingly, the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) indicated a marginally lower rate of headline deflation, recording 0.6% in June 2025 compared to the deflation of 0.7% in May 2025.
Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as indicated by the Total Activity Index, rebounded to 59.7 in May 2025. Most of the survey respondents mentioned that construction activities regained momentum in May, recovering from the slowdown in the April festive season.
The Central Bank of Sri Lanka (CBSL) has recently observed advertisements published in the print and social media that promote overseas investments in immoveable properties (overseas property investments) among Sri Lankan resident individuals. Such advertisements also offer guidance on obtaining foreign financing for such investments.
The Central Bank of Sri Lanka (CBSL), in collaboration with the Ministry of Finance and the International Monetary Fund (IMF), co-hosted the high-level conference on ‘Sri Lanka’s Road to Recovery: Debt and Governance’ on 16 June 2025 at the Shangri-La Colombo. The event brought together key policymakers, global stakeholders, as well as private sector and civil society representatives, to deliberate on Sri Lanka’s recovery under the IMF-supported reform programme.
Purchasing Managers’ Indices indicate improvements in both Manufacturing and Services activities in May 2025.
The Central Bank of Sri Lanka (CBSL), with a view to facilitating sustainable revival of businesses that were adversely affected during the recent past has advised the licensed commercial banks and licensed specialised banks (hereinafter referred to as licensed banks) to provide further concessions to those SME borrowers who commenced discussions for business revival with the respective banks by 31.03.2025. These relief measures are in line with Circular No. 04 of 2024 dated 19.12.2024 on Relief Measures to Assist the affected SMEs and the Addendum Circular No. 01 of 2025 dated 01.01.2025.
Dr. Gita Gopinath, the First Deputy Managing Director (FDMD) of the International Monetary Fund (IMF), is scheduled to visit Sri Lanka from 15-16 June 2025.
The easing of deflationary conditions continued in May 2025, in line with the Central Bank’s near-term projections. Accordingly, the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) reflected a slower pace of headline deflation at 0.7% in May 2025 compared to the deflation of 2.0% recorded in April 2025
Reflecting the resilience of the external sector, the monthly current account has remained in surplus since January 2025.
The merchandise trade deficit widened in April 2025 compared to both April 2024 and March 2025. This was as a result of merchandise imports growing at a higher pace (17.5 %, y-o-y), mainly driven by imports of motor vehicles (US dollars 134 million), compared to the growth in merchandise exports (10.4 %, y-o-y).
