• Imposition/ Collection of Administrative Penalties by the Financial Intelligence Unit (FIU) to Enforce Compliance on Financial Institutions from 01 April 2023 to 26 September 2023

    By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. The penalty may be prescribed taking into consideration the nature and gravity of relevant non-compliance of the Financial Institution.

    Accordingly, as Sri Lanka’s regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), the FIU collected penalties as indicated below, amounting to Rs. 1.7 million in total from 01 April 2023 to 26 September 2023 to enforce compliance on Financial Institutions. The money collected as penalties were credited to the Consolidated Fund.

  • Sri Lanka Purchasing Managers’ Index (Manufacturing and Services) - September 2023

    Purchasing Managers Indices in September 2023 indicated a contraction in Manufacturing activities and an expansion in Services activities.

    Manufacturing PMI recorded an index value of 45.7 in September 2023, indicating a contraction in manufacturing activities. This setback was contributed by the subdued performance observed in all the sub-indices.

    Services sector PMI recorded an index value of 54.7 in September 2023, indicating an expansion in the services activities at a slower pace compared to the previous month. This was led by the increases observed in New Businesses, Business Activities, Employment and Expectations for Activity. Nevertheless, Backlogs of Works remained contracted during the month.

  • The Central Bank of Sri Lanka further reduces policy interest rates

    The first monetary policy review by the Monetary Policy Board under the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBA) was held on 04 October 2023. In this review, the Board decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points (bps) to 10.00 per cent and 11.00 per cent, respectively. The Board arrived at this decision following a careful analysis of the current and expected developments, including low inflation and benign inflation expectations in the domestic economy, with the aim of stabilising inflation at the envisaged 5 per cent level in the medium term, thereby enabling the economy to reach its potential growth. The Board expects that this reduction of policy interest rates, along with the significant easing of monetary policy effected previously, including the directions issued by the Central Bank to licensed banks to reduce interest rates, and the significant reduction of risk premia on government securities, would accelerate the downward adjustment in market interest rates, particularly lending rates, in the period ahead. The financial sector is urged to pass on the benefits of the continued easing of monetary conditions to individuals and businesses adequately and swiftly, thereby supporting the envisaged rebound of the economy.

  • External Sector Performance – August 2023

    The merchandise trade deficit widened in August 2023 compared to a year ago led by higher decline in export earnings than the decline in import expenditure. However, both export earnings and import expenditure increased compared to July 2023. 

    Both workers’ remittances and earnings from tourism recorded notable improvements in August 2023 compared to the previous year.

    In August 2023, foreign investment in the government securities market recorded a net outflow, while foreign investment to the Colombo Stock Exchange recorded a net foreign inflow in August 2023.

  • CCPI based headline inflation recorded a significant decline in September 2023

    Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) decreased to 1.3% in September 2023 from 4.0% in August 2023. The decline in the headline inflation is mostly in line with the projections envisaged by the Central Bank of Sri Lanka (CBSL) in July 2023.

  • Release of “Sri Lanka Socio-Economic Data – 2023” Publication

    “Sri Lanka Socio-Economic Data – 2023”, the annually published data folder of the Central Bank of Sri Lanka, is now available for public information. The current data folder is the 46th volume of the series.

  • Sri Lanka Purchasing Managers’ Index (Construction) - August 2023

    The construction industry continued to perform at a subdued level in August 2023, yet reaching towards the neutral threshold, recording a Total Activity Index value of 47.0. As per the respondents, firms tend to undercut prices to secure the limited available projects in a highly competitive tender bidding process.

  • Conversion of Outstanding Credits of the Central Bank of Sri Lanka to the Government into Negotiable Debt Instruments with Specified Maturities under the Domestic Debt Optimisation Programme (DDO)

    In accordance with Section 129(2) of the Central Bank of Sri Lanka Act, No. 16 of 2023, outstanding Provisional Advances from the Central Bank of Sri Lanka (CBSL) to the Government and outstanding Treasury bills purchased by the CBSL in the primary market were converted into ten (10) step-down fixed coupon* new Treasury bonds and to twelve (12) existing Treasury bills on 21 September 2023 as follows:

  • Governing Board of the Central Bank of Sri Lanka

    The newly established Governing Board of the Central Bank of Sri Lanka, constituted under the provisions of the recently promulgated Central Bank Act No. 16 of 2023, was held today, the 21st of September 2023, at the Board Room of the Central Bank of Sri Lanka.

    The Newly established Governing Board, succeeds the Monetary Board that functioned previously, under the provisions of the Monetary Law Act (MLA).

    Today’s meeting of the new Governing Board of the Central Bank, was held, with the participation of the following members :-

  • Publication of Financial Soundness Indicators – Banks and Licensed Finance Companies

    The Central Bank has released ‘Financial Soundness Indicators’ as a key tool for communicating the performance of banks and finance companies supervised by the Central Bank. The publication includes key ratios and financials used in policy analyses for identifying strengths and vulnerabilities in the financial system.

    The publication presents sectoral financial information such as assets, liabilities, earnings, profits and capital whilst providing key ratios associated with each category. This publication will be a useful and reliable source of reference for those who are interested in the performance of major financial institutions in Sri Lanka.

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