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Provincial Gross Domestic Product (PGDP) - 2020

Amidst outbreak of the COVID-19 pandemic, Western province continued to be the nerve center of the economy whilst its share declined, contributing to an overall contraction.

Western province secured the largest share (38.0 per cent) of the  country’s nominal GDP. However, due to slow down in economic activities due to the pandemic situation, the share declined by 1.0 per cent from 2019.  Central (11.3 per cent) and North Western (11.0 per cent) provinces were ranked at second and third positions, respectively. 

PGDP shares increased in North Western, Southern, Sabaragamuwa, and North Central provinces while in Western and Northern provinces, share decreases could be observed year-on-year.   

SL Purchasing Managers’ Index (PMI) – November 2021

Purchasing Managers' Indices for both Manufacturing and Services activities expanded further in November 2021.

Benefitting from the normalising of economic activities in the country, the Manufacturing PMI continued to expand in November 2021 and recorded an index value of 61.9.

Services sector PMI registered an index value of 62.1 indicating a further solid performance in November 2021.

The Credit Information Bureau (CRIB) donated Rs. 50 Mn to the “COVID – 19 Healthcare and Social Security Fund”

“COVID – 19 Healthcare and Social Security Fund” that has been established by His Excellency President Gotabaya Rajapaksa to strengthen the mitigation activities aimed at controlling the spread of COVID-19 virus in the country and related social welfare programme, have been vested with a set of wide responsibilities. Local as well as foreign donors can make their financial contributions to the “COVID – 19 Healthcare and Social Security Fund”.

The Governor of the Central Bank of Sri Lanka, Hon. Ajith Nivard Cabraal, in his capacity as the Chairman of the “COVID – 19 Healthcare and Social Security Fund”, accepted the generous donation of Rs. 50.0 million to the “COVID – 19 Healthcare and Social Security Fund” from Mr. Nandi Anthony, General Manager, CRIB.

Central Bank Initiates Regulatory Actions Against Errant Money Changers

In response to several complaints that certain Authorized Money Changers are engaged in activities which are not in compliance with the Directions issued under the provisions of the Foreign Exchange Act No. 12 of 2017 (FEA), the Central Bank is conducting a series of spot examinations at the places of Authorized Money Changers, thereby strengthening the monitoring and supervision of the Authorized Money Changers.

In the spot examinations conducted during the months of November and December 2021, it was revealed that the following Authorized Money Changers have not complied with the Directions issued to them under the provisions of FEA. Accordingly, after the Minister of Finance being informed, Notices have been issued to them to comply with the relevant Directions, within a specified time period.

The Central Bank issues Operating Instructions on “Additional Incentive Scheme on Inward Workers’ Remittances”

The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to pay an incentive of Rs. 8.00 per US dollar for workers’ remittances, in addition to the existing incentive of Rs.2.00 under the “Incentive Scheme on Inward Workers’ Remittances”, when such funds are remitted through Licensed Banks (LBs) and other internationally accepted formal channels and converted into Sri Lankan rupees during the period from 01.12.2021 to 31.12.2021.

Accordingly, the total incentive for inward workers’ remittances converted into Sri Lankan rupees during the month of December 2021 will be Rs. 10.00 per US dollar.

Request for Proposals for Securitised Financing Arrangement for the Government of Sri Lanka

The Central Bank of Sri Lanka (CBSL), on behalf of the Government of Sri Lanka (GOSL) requested proposals from international investor community on 12 November 2021 for the arrangement of a medium-term foreign currency financing facility by securitising the foreign currency receipts of the Central Bank of Sri Lanka under the mandatory sale of ten (10) per cent of workers’ remittances converted into Sri Lankan Rupees by licensed banks. The deadline for submitting responses was 15.00 hrs on 30 November 2021.

Accordingly, there were seven (7) responses, among which there were five (5) leading international banks and two (2) established investment arrangers.

These responses are being reviewed to determine the most suited modality to initiate the securitised financing arrangement.

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