• The Credit Information Bureau (CRIB) donated Rs. 50 Mn to the “COVID – 19 Healthcare and Social Security Fund”

    “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.

  • Central Bank Initiates Regulatory Actions Against Errant Money Changers

    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 Central Bank issues Operating Instructions on “Additional Incentive Scheme on Inward Workers’ Remittances”

    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.

  • Request for Proposals for Securitised Financing Arrangement for the Government of Sri Lanka

    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.

  • CCPI YoY inflation increases to 9.9 per cent, while annual average inflation rises to 5.3 per cent in November 2021

    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.

  • Monetary Policy Review - No. 8 of 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.

  • NCPI based Inflation increased in October 2021

    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.

  • Monetary Board Appoints Four New Assistant Governors

    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.

  • Sri Lanka Purchasing Managers’ Index - October 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.

  • External Sector Performance - September 2021

    Merchandise trade deficit narrowed to US dollars 495 million in September 2021, compared to US dollars 525 million in September 2020. Earnings from exports continued to record values in excess of US dollars 1.0 billion for the fourth consecutive month in 2021 while import expenditure remained at almost the same level as in September 2020. Tourist arrivals continued the growth momentum with a notable increase over the previous month. A moderation of workers’ remittances was observed in September 2021. The financial account of the balance of payments strengthened during the month with the receipt of the proceeds of the syndicated loan facility from the China Development Bank (CDB) and remaining proceeds of the bilateral currency swap arrangement between the Central Bank of Sri Lanka and the Bangladesh Bank. Meanwhile, the weighted average spot exchange rate in the interbank market appreciated and stabilised during the month with action by the Central Bank to clear the backlog of shipments of essential imports and guidance on the exchange rate.

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