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Inflation in July 2016

Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics, decreased to 5.8 per cent in July 2016 from 6.4 per cent in June 2016, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in July 2016.

The change in the NCPI measured on an annual average basis increased to 3.4 per cent in July 2016 from 3.1 per cent in June 2016.

SL Purchasing Managers’ Index Survey - July 2016

The Manufacturing PMI decreased to 50.6 in July indicating a neutral performance in comparison to 55.1 in June 2016. The decline in July in comparison to June was mainly due to the decrease in New Orders and Production Indices. The month-on-month decline of the PMI and the sub-indices follows the significant increase observed in the month of June compared to May 2016. All sub-indices of PMI, apart from Employment and Stock of Purchases Indices, declined compared to the previous month. Overall data points to an expansion on the strength of Production and Stock of Purchases Indices while all the other sub-indices remained below the neutral 50.0 threshold. The expectations for activities indicated an improvement for the next three months.

Economic and Social Statistics of Sri Lanka - 2016

The 'Economic and Social Statistics of Sri Lanka – 2016' an annual publication of the Central Bank of Sri Lanka, is now available for public access. The publication contains economic and social indicators of Sri Lanka in the areas of Gross Domestic Product (GDP), agriculture, industry, external trade and finance, government finance, banking and financial institutions, money and capital markets, prices and wages, labour force, transportation, education, health, telecommunication services, population, climate and selected information on economic and social indicators of other countries. In addition, information on living conditions, poverty and household characteristics in Sri Lanka from Household Income and Expenditure Survey (HIES) conducted by the Department of Census and Statistics also available in the publication. Further, it includes disaggregated information at the provincial level on key economic variables.

External Sector Performance - May 2016

Sri Lanka’s external sector showed a mixed performance during May 2016 with a widening of the trade deficit, continued growth in tourist earnings and an increase in workers’ remittances. The trade deficit widened on account of the decline in export earnings, mainly due to the subdued performance in exports of tea, rubber products and textiles and garments, amidst the marginal growth in import expenditure on a year-on-year basis. However, the widening of the trade deficit on a cumulative basis as of end May 2016 was offset to some extent by continuous inflows on account of tourism, increased workers’ remittances and moderate inflows to the financial account during the period.

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Provincial Gross Domestic Product – 2015

Provincial Gross Domestic Product (PGDP) for 2015 has been computed by the Statistics Department of the Central Bank of Sri Lanka (CBSL), based on the disaggregation of the rebased series of National Accounts estimates (2010 constant prices) by the Department of Census and Statistics (DCS)1. In the estimation of PGDP, the value of each line item in GDP (base year 2010) is apportioned using relevant indicators at provincial level.

The Sri Lankan economy reached an annual real GDP growth of 4.8 per cent in 2015, while the nominal GDP recorded a growth of 7.0 per cent to Rs. 11,183 billion. The disaggregation of nominal GDP across provinces is given in Table 1.

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Appoinment of Mr Nihal Fonseka as a Member of the Monetary Board

Mr Anthony Nihal Fonseka has been appointed by His Excellency the President as a Member of the Monetary Board of the Central Bank of Sri Lanka with effect from July 27, 2016 in terms of Section 8(2)(c) of the Monetary Law Act.

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