• Statement of the Monetary Board on the Recent Media Reports

    There has been widespread coverage in the press and electronic media regarding a report related to the examination of Perpetual Treasuries Ltd conducted by the Central Bank of Sri Lanka as the regulator of Primary Dealers operating in the Government securities market.

    The release of this report into the public domain has not been authorized. The Central Bank of Sri Lanka’s internal processes within the Department of Supervision of Non-Bank Financial Institutions have not been completed and the final report has not as yet been submitted to the Monetary Board for its consideration. Arising from this unauthorized disclosure, the Central Bank of Sri Lanka is strengthening its internal control mechanisms and a complaint has also been made to law enforcement authorities to inquire into the unauthorized release of this report.

  • SL Purchasing Managers’ Index Survey - September 2016

    The Manufacturing Sector PMI was 57.7 in September which is an increase of 4.2 index points from 53.5 in August 2016. The increase in September was fuelled by the improvements observed in New Orders and Production sub-indices. The New Orders and Production sub-indices of manufacturing sector PMI increased compared to the previous month while the Stock of Purchases index remained unchanged. However, the Employment and Suppliers’ Delivery time sub-indices decreased compared to the previous month. Overall data points to an expansion where all the sub-indices apart from Suppliers’ Delivery Time index which is neutral, are above the 50.0 threshold. The expectations for activities indicate an improvement for the next three months.

  • Statement issued by the Monetary Board

    The Monetary Board, at its special meeting held on Friday, 14th October 2016, considered an interim report on the operations of primary dealers, including their financial performance during the year ended 31st March, 2016 as well as the five month period ended 31st August 2016. It noted with concern the sharp disparity in the performance of primary dealers, as well as certain issues related to the pattern of trading activities. In this connection, the Monetary Board instructed expeditious completion of the ongoing process of preparation of the relevant On-Site Examination Reports. This would enable the Monetary Board to make an early determination on the future course of action.

  • External Sector Performance - July 2016

    The external sector performance improved in July 2016 with a reduction of the trade deficit, increased tourist earnings and higher inflows to the financial account. The trade deficit contracted in July, due to the reduction in imports which outweighed the reduction in exports. Tourist earnings increased while workers’ remittances declined during the month compared to the corresponding period of the previous year. Inflows to the financial account strengthened with the proceeds of US dollars 1,500 million from the issuance of the 10th international sovereign bond, US dollars 300 million from the Syndicated Loan facility and net inflows recorded in the government securities market and the Colombo Stock Exchange (CSE), easing the pressure on the Balance of Payments.

  • Central Bank Resolves Four Insolvent Financial Institutions to Protect Depositors and Promote the Financial System Stability

    As announced to the public on 10.10.2016, the Monetary Board at its meeting held on 14.10.2016 considered resolution issues pertaining to a number of non-bank financial institutions in the context of relevant legal provisions in the interest of protecting the public trust in the financial system. Accordingly, the Monetary Board approved a resolution mechanism for repayment of depositors of three finance companies and legitimate investors in government securities-linked investments in Entrust Securities PLC.

  • Inflation in September 2016

    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, increased to 4.7 per cent in September 2016 from 4.5 per cent in August 2016, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in September 2016.

    The change in the NCPI measured on an annual average basis increased to 3.8 per cent in September 2016 from 3.6 per cent in August 2016.

  • Land Price Index - First Half of 2017

    In order to monitor the developments in the real estate sector, Central Bank of Sri Lanka (CBSL) has been compiling and analyzing several indicators. The bi-annual Land Price Index (LPI) which is compiled covering the Colombo District since 1998 is one of the indicators of this nature. In the compilation process of LPI, CBSL uses the land price data collected by the Valuation Department of Sri Lanka covering around 50 centers of five Divisional Secretariat (DS) divisions1 in the Colombo District. In view of the diverse nature of the land use and to maintain homogeneity, three indices for residential, commercial and industrial lands are computed separately. The overall LPI is computed by taking the average of these three sub-indices.

    FULL TEXT

  • Financial Intelligence Unit of Sri Lanka Entered into a Memorandum of Understanding with Department of Inland Revenue

    In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), the Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the Department of Inland Revenue on October 19, 2016 at the Central Bank of Sri Lanka to exchange information in order to facilitate investigations and prosecutions on money laundering and terrorist financing. Mrs. Kalyani Dahanayake, Commissioner General, Department of Inland Revenue and Mr. H. Amarathunga, Director, FIU signed the MOU on behalf of the respective institutions in the presence of Dr.

  • Monetary Policy Review - No. 7 of 2017

    Considering developments in the domestic and international macroeconomic environment, the Monetary Board, at its meeting held on 06 November 2017, was of the view that the current monetary policy stance is appropriate. Accordingly, the policy interest rates of the Central Bank of Sri Lanka will remain unchanged at their current levels.

    The decision of the Monetary Board is consistent with the objective of maintaining inflation at midsingle digit levels over the medium term and thereby facilitating a sustainable growth trajectory. The rationale underpinning the monetary policy stance is set out below.

  • Clarification on Employment Numbers Referred to in the Central Bank Annual Reports

    The Central Bank of Sri Lanka (CBSL) has observed media reports highlighting the employment numbers referred to in the CBSL Annual Reports of 2014, 2015 and 2016.

    Subsequent to the Census of Population and Housing (CPH) 2012 conducted by the Department of Census and Statistics (DCS) covering the entire island, the Registrar General’s Department introduced changes to the Mid-Year Population Estimates (MYPE) and published a revised series. Accordingly, in July 2016, the Labour Force Survey (LFS) estimates were re-weighted by the DCS and a new series was published for data pertaining to the years from 2011 onwards. This is the general practice in all other countries and it maintains the consistency of LFS estimates with the revised MYPE.

Pages

more

About

More Services

Useful Sites

Follow Us