Considering developments in the domestic and international macroeconomic environment, the Monetary Board, at its meeting held on 06 November 2017, was of the view that the current monetary policy stance is appropriate. Accordingly, the policy interest rates of the Central Bank of Sri Lanka will remain unchanged at their current levels.

The decision of the Monetary Board is consistent with the objective of maintaining inflation at midsingle digit levels over the medium term and thereby facilitating a sustainable growth trajectory. The rationale underpinning the monetary policy stance is set out below.

Provincial Gross Domestic Product (PGDP) for 2016 has been computed by the Statistics Department of Central Bank of Sri Lanka (CBSL), by disaggregating the nominal Gross Domestic Product (GDP) compiled by the Department of Census and Statistics (DCS). In the estimation of PGDP for the provinces, the value of each line item in GDP is apportioned using relevant indicators at provincial level.

In nominal terms the national GDP for 2016 was Rs. 11,839 billion recording a growth of 8.11 per cent and a per capita income of Rs. 558,363 (US$ 3,835). The overall performance of PGDP in 2016 follows the general trend of GDP of the country and developments in economic activities. The subdued performance of the agriculture activities contributed to the slower growth in provinces where agriculture remains a main economic activity. Even though the Western province continues to drive overall economic progress occupying 39.7 per cent of GDP, contributions from other provinces gradually increase with the expansion of regional economic bases.