The Manufacturing sector PMI recorded 66.5 in March which is an increase of 9.4 index points compared to February 2017. This indicates that the manufacturing activities continued to expand in March 2017, largely attributable to increasing orders and manufacturing activities due to new year seasonal demand as reflected through increased in New Orders and Production sub-indices. Stock of Purchases increased with accumulated stock and rectification of delivery delays which witnessed during last month. However, Suppliers’ Delivery Time indicated a decline with normalising supply arrangements especially from China after their new year period. The Employment sub-index also dropped slightly compared to the previous month. Overall data points to an expansion where all the sub-indices are above the neutral 50.0 threshold.
-
SL Purchasing Managers’ Index Survey - March 2017
-
Statement Issued by the Central Bank of Sri Lanka Clarifying Certain Media Reports on the Examination of the Employees’ Provident Fund Transactions in Government Securities
The Central Bank of Sri Lanka wishes to clarify its position on certain media reports that carried erroneous facts on the proceedings of the Monetary Board meeting held recently.
The Monetary Board had a discussion on the Report on the Examination of the Employees’ Provident Fund Transactions in Government Securities with a view to decide the suitable course of action to be followed in respect of the findings. The Monetary Board decided to commence disciplinary proceedings in terms of the internal procedures of the Central Bank of Sri Lanka against any officials of the Bank where there is evidence of wrongdoing.
-
External Sector Performance – December 2016
The performance of Sri Lanka’s external sector was mixed in December 2016. The trade deficit expanded as a result of the considerable increase in import expenditure, which more than offset the growth in export earnings during the month of December 2016. On a positive note, both earnings from tourism and workers’ remittances grew at a healthy rate, year-on-year, during the month. The government securities market witnessed a net outflow in December, while some inflows to the Colombo Stock Exchange (CSE) were observed.
-
Monetary Policy Review - No. 2 of 2017
As per the provisional estimates of the Department of Census and Statistics (DCS), the Sri Lankan economy grew by 4.4 per cent in real terms during 2016 compared to the growth of 4.8 per cent in 2015. Within this annual growth, Industry related activities grew notably by 6.7 per cent driven by construction related activities, while Services related activities grew by 4.2 per cent mainly with the expansion of financial services, insurance and telecommunications. However, Agriculture related activities contracted by 4.2 per cent in 2016, impacted by supply side disruptions on account of floods in the second quarter and drought conditions during the final quarter of 2016.
-
Inflation in February 2017
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 8.2 per cent in February 2017 from 6.5 per cent in January 2017, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in February 2017. The low base that prevailed in February 2016 was the significant contributor to the sharp increase in year-on-year inflation in February 2017, in addition to the monthly price increase observed.
The change in the NCPI measured on an annual average basis increased to 5.1 per cent in February 2017 from 4.6 per cent in January 2017.
-
SL Purchasing Managers’ Index Survey - February 2017
The Manufacturing Sector PMI recorded an index value of 57.1 in February which is an increase of 0.9 index points compared to January 2017. This indicates that the manufacturing activities continued to expand in February 2017, largely attributable to increasing orders for the upcoming New Year season visible in New Orders sub-index. The Stock of Purchases subindex decreased in February as a result of the usage of stocks accumulated in January and the delays in delivering materials which is reflected by lengthening of Suppliers’ Delivery Time. The Employment sub-index also increased while Production sub-index remain unchanged. The less number of working days in February was highlighted as a constraint for increasing the production to meet the increase in new orders. Overall data points to an expansion where all the sub-indices are above the neutral 50.0 threshold.
-
Change of Metal/Alloy of Rupee 1 Coin and Rupees 5 Coin
The Central Bank of Sri Lanka hereby informs the general public that a new set of circulation coins of Rupee 1 and Rupees 5 will be issued to circulation after changing the metal/alloy from brass plated steel (gold colour) to stainless steel (silver colour).The edge lettering of the Rupees 5 coin has been removed in the new stainless steel coin. All other specifications including dimensions and designs of the above said coins remain same as of Rupee 1 coin and Rupees 5 coin that have been issued since 2005.
The said new coins will be legal tender in Sri Lanka for payments and will be a liability of the Central Bank of Sri Lanka while in circulation.
-
External Sector Performance – November 2016
Sri Lanka’s external sector recorded a modest performance during November 2016. The trade deficit widened as a result of higher import expenditure amidst a decline in export earnings, albeit marginally, during the month of November 2016. The significant increase in import expenditure in November 2016 was mainly due to the increase in expenditure on intermediate and investment goods. Earnings from tourism continued to record a healthy growth while workers’ remittances declined marginally during the month. The government securities market witnessed a net outflow in the month of November, while net inflows to the Colombo Stock Exchange (CSE) and long term loan proceeds to the government supported the Balance of Payments (BOP) in November 2016.
-
IMF Staff Concludes Visit to Sri Lanka to Discuss Progress of Economic Reform Program
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
-
Inflation in May 2017
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), decelerated to 7.1 per cent in May 2017 from 8.4 per cent in April 2017, on year-on-year basis. This deceleration is mainly due to the base effect amid a monthly increase in NCPI. Both Food and Non-food categories contributed towards the year-on-year inflation in May 2017.
The change in the NCPI measured on an annual average basis increased to 6.1 per cent in May 2017 from 6.0 per cent in April 2017.