Central Bank of Sri Lanka

News

Sri Lanka PMI - Construction contracted in April 2026

The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, declined to 45.7 in April 2026, mainly due to the seasonal slowdown associated with the Sinhala and Tamil New Year period. Further, many survey respondents cited input shortages, particularly of petrochemical-based raw materials, and rising costs stemming from the conflict in the Middle East as challenges to the timely execution of planned work.

IMF Executive Board Completes the Combined Fifth and Sixth Reviews Under the Extended Fund Facility for Sri Lanka

The IMF Executive Board completed the combined Fifth and Sixth Reviews of the Extended Fund Facility for Sri Lanka, providing the country with immediate access to SDR508 million (about US$695 million) to support economic policies and reforms.

The Central Bank of Sri Lanka increases the Overnight Policy Rate (OPR)

The Monetary Policy Board, at its meeting held yesterday, decided to increase the Overnight Policy Rate (OPR) by 100 bps to 8.75%. The Board arrived at this decision after carefully considering the evolving conditions and outlook on the domestic and global fronts.

The CBSL introduces a maximum Loan to Value (LTV) ratio for gold backed lending and tightens LTV ratios on credit granted for motor vehicles

The Governing Board of the CBSL decided to introduce a maximum LTV ratio for credit facilities secured by gold and tighten the maximum LTV ratios applicable to credit facilities granted in respect of motor vehicles with effect from 25 May 2026. These steps are taken by the CBSL in line with its macroprudential authority, in order to promote prudent lending practices, safeguard the resilience of financial institutions, and mitigate the potential build-up of systemic vulnerabilities.

SL Purchasing Managers’ Index (PMI) – April 2026

Purchasing Managers’ Indices indicate a contraction in Manufacturing activities and Services activities in April 2026.

Following the seasonal pattern, Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) contracted in April 2026, recording an index value of 42.6. New Orders, Production, Employment, and Stock of Purchases sub-indices declined during the month compared to the seasonal peak in March, resulting in an overall contraction in the index.