Several media reports have been brought to the notice of the Central Bank of Sri Lanka (CBSL) in which certain macroeconomic projections are erroneously attributed to the CBSL. 

The CBSL has not released to the public any update to its macroeconomic projections since the publication of the CBSL Annual Report in April 2020. Given the conditions of uncertainty created by the COVID-19 pandemic, frequent updates to macroeconomic projections are required, and the CBSL has continued to monitor standard indicators of economic activity as they become available. It has been using unconventional indicators as well on a real time basis in its analysis and policy guidance. 

The Central Bank of Sri Lanka (CBSL) has recently entered into an agreement with the Federal Reserve Bank, New York (FED) as a temporary source of US dollar liquidity to be used when required. The facility, in technical jargon, is an overnight Repurchase (Repo) facility available for “Foreign and International Monetary Authorities” (FIMA). Many central banks in the world have resorted to this facility to meet their short-term US dollar liquidity requirements. This facility enables a Central Bank to secure short-term funding when needed, without having to make any sudden structural adjustments to its long-term investment portfolios in foreign exchange.