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IMF Staff Reaches Staff-Level Agreement on the Combined Fifth and Sixth Reviews under Sri Lanka’s Extended Fund Facility Arrangement

An International Monetary Fund (IMF) mission team led by Mr. Evan Papageorgiou visited Sri Lanka from 26 March to 9 April 2026 for the combined Fifth and Sixth Reviews under Sri Lanka’s Extended Fund Facility Arrangement. 

National Development Bank PLC - Internal Fraud

The National Development Bank PLC (NDB) has informed the Central Bank of Sri Lanka (CBSL) that it has uncovered an internal fraud that could lead to a significant loss being incurred. CBSL has also been informed that no customer accounts or deposits have been affected by this fraud.

External Sector Performance - February 2026

The external current account recorded a surplus in February 2026, extending the trend observed since November 2025, and recorded a cumulative surplus of US$ 487 million during January–February 2026.

CCPI based headline inflation accelerated in March 2026

The Colombo Consumer Price Index (CCPI, 2021=100)1 based headline inflation (year-on-year, Y-o-Y) accelerated in March 2026. Accordingly, headline inflation (Y-o-Y) was recorded at 2.2% in March 2026 compared to 1.6% in February 2026.

Sri Lanka PMI - Construction expanded in February 2026

The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, recorded a value of 70.3 in February 2026. This indicates continued expansion in construction activities, albeit at a slower pace compared to the significantly higher level observed in the previous month. Most firms reported favourable industry conditions in February, underpinned by steady inflows of construction projects and favourable weather.

The Central Bank of Sri Lanka keeps the Overnight Policy Rate (OPR) unchanged

The Monetary Policy Board, at its meeting held yesterday, decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%. The Board arrived at this decision after carefully considering evolving developments and outlook on the domestic and global fronts, with particular attention to uncertainties arising from the ongoing Middle East conflict.

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