Central Bank of Sri Lanka

News

Prof. W D Lakshman Takes Office as the Governor of the Central Bank of Sri Lanka

Newly appointed Governor of the Central Bank of Sri Lanka Deshamanya Professor W D Lakshman assumed duties in his new post on Tuesday, the 24th of December 2019 at the Governor’s office in Colombo. His appointment was made by His Excellency the President of the Democratic Socialist Republic of Sri Lanka Gotabaya Rajapaksa, according to the provisions of the Monetary Law Act No.58 of 1949. Accordingly, Professor Lakshman will function as the Chairman of the Monetary Board of the Central Bank of Sri Lanka.

Inflation decreased in November 2019

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) decreased to 4.1 per cent in November 2019 from 5.6 per cent in October 2019 contributed by the statistical effect of the high base prevailed in November 2018. Year-on-year (Y-o-Y) Food inflation decreased substantially to 4.0 per cent in November 2019 from 7.3 per cent in October 2019 while Non-food inflation (Y-o-Y) declined marginally to 4.2 per cent in November 2019 from 4.3 per cent in October 2019.

Response to the Revision of Sri Lanka’s Rating Outlook by Fitch Ratings

Following the Fitch Ratings’ announcement on the revision to the Outlook on Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) on 19 December 2019, the Ministry of Finance, Economic and Policy Development has issued a response, which can be found on the link below:

Sri Lanka Purchasing Managers’ Index - November 2019

Manufacturing PMI expanded in November 2019 recording an index value of 56.0 mainly due to the expansion in New Orders, Production and Employment.

All the sub-indices indicated an expansion, yet at a slower pace compared to October 2019. New Orders and Production expanded at a slower rate mainly due to the slowdown in manufacturing of textile and wearing apparel. Employment slowed down marginally in line with these developments.

External Sector Performance - October 2019

The trade deficit contracted in October 2019 (year-on-year), with the decline in expenditure on imports and a marginal decline in earnings from exports. The trade deficit contracted during the first ten months of 2019 compared to the corresponding period in 2018, as a result of the notable decline in cumulative expenditure on imports along with increased cumulative earnings from exports. Meanwhile, the drop in tourist arrivals was contained further in October 2019. Workers’ remittances improved (year-on-year) in October 2019, although a cumulative decline was recorded. In the financial account, foreign investment in the CSE recorded a net outflow while the government securities market recorded a marginal net inflow in October 2019. The exchange rate recorded mixed movements during the month of October and remained appreciated against the US dollar so far during the year.