Central Bank of Sri Lanka

News

Sri Lanka Launches its National Card Scheme

The Central Bank of Sri Lanka together with LankaClear (Pvt) Ltd., ( LCPL) achieved a significant milestone in the country’s payment landscape by launching the National Card Scheme (NCS). NCS, will be operated by LCPL in partnership with the international payment card operator JCB International of Japan. Initially, a debit card will be issued under this card scheme. Additionally, the NCS cards will be accepted across over 4,800 ATMs Island wide connected to LankaPay network to facilitate cash withdrawals.

Inflation in May 2019

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) decreased to 3.5 per cent in May 2019 from 3.6 per cent in April 2019 due to the high base prevailed in the corresponding month of the previous year. Meanwhile, in May 2019, year-on-year Food and Non-food inflation recorded -0.4 per cent and 6.7 per cent respectively.

The change in the NCPI measured on an annual average basis increased marginally to 2.0 per cent in May 2019 from 1.9 per cent in April 2019.

When monthly change is considered, the NCPI increased by 1.1 per cent in May 2019 with the increases observed in the prices of the items in both Food and Non-food categories. Within the Food category, prices of vegetables, fresh fish, limes, potatoes and milk powder recorded increases. In addition, within the Non-Food category, prices of the items in Transport; Health; and Recreation and Culture sub-categories increased during the month.

The National Launch of the Roadmap for Sustainable Finance in Sri Lanka and a High-Level Seminar for Senior Officers of Financial Institutions and Stakeholders

The Central Bank of Sri Lanka launched the Roadmap for Sustainable Finance in Sri Lanka and hosted a high-level seminar for senior officers of Financial Institutions and Stakeholders on 19 June 2019 at The Atrium of the Central Bank of Sri Lanka, Colombo. This was the National Launch of the Roadmap for Sustainable Finance which was unveiled globally on 10 April 2019 at the Sustainable Banking Network Global Meeting of the International Finance Corporation (IFC) in Washington, D.C, USA.

External Sector Performance - April 2019

The external sector remained relatively stable in April 2019 supported by a contracting trade deficit.

In April 2019, the deficit in the trade account narrowed to US dollars 797 million from US dollars 999 million in April 2018.

The considerable reduction in the trade deficit in April 2019 was due to the decline in import expenditure by 11 per cent (year-on-year) and a marginal increase of export earnings by 0.4 per cent (year-on-year).

Sri Lanka Purchasing Managers’ Index - May 2019

Manufacturing activities recovered to an index value of 50.7 in May 2019 which is an increase of 9.7 index points, compared to April 2019. The recovery of manufacturing PMI is mainly attributable to the significant increase in Production and New Orders, especially, in manufacturing of textiles, wearing apparels, leather and related products. Increase in production was mainly attributable to the fulfilment of accumulated orders using extra hours of factory operations. Many respondents, especially in textile and apparel sector, highlighted that they had to work extra hours on week days as well as in weekends during the month to clear the backlog of orders.