The Central Bank, in consultation with the Government of Sri Lanka, has introduced the Saubagya Covid-19 Renaissance Loan Scheme to provide working capital loans at 4% interest rates to businesses adversely affected by the COVID-19 outbreak, through Licensed Banks, thereby supporting the revival of economic activity in the country. This Loan Scheme is available for COVID-19 affected businesses with an annual turnover below Rs. 1 billion, including self-employment and individuals. The Rs. 1 billion limit of annual turnover will not be applicable to businesses engaged in tourism, exports and related logistical supplies.

Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) declined to 3.9 per cent in June 2020 from 4.0 per cent in May 2020. This was solely driven by the statistical effect of the high base prevailed in June 2019. Food inflation (Y-o-Y) increased to 10.0 per cent in June 2020 from 9.9 per cent in May 2020. Meanwhile, Non-food inflation (Y-o-Y) declined to 1.4 per cent in June 2020 from 1.6 per cent in May 2020.

The change in the CCPI measured on an annual average basis remained unchanged at 4.7 per cent in June 2020.