Category: Money
Central Bank of Sri Lanka maintains policy interest rates
The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 05 October 2022, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 14.50 per cent and 15.50 per cent, respectively. In arriving at this […]
Transitioning from hawkish to dovish; 75-pct probability for policy rates to remain unchanged: FCR
First Capital Research (FCR) believe that CBSL may consider maintaining the monetary policy rates at its current levels in the upcoming policy review meeting allowing a soft landing from its hawkish to dovish stance. However, given the necessity to provide monetary stimulus to prevent further weakening of the economy and the notable improvement in majority […]
Sri Lanka adds Indian Rupee to designated foreign currencies for off-shore banking
Sri Lanka’s Central Bank has added the Indian Rupee to the list of currencies that are permitted to be used for offshore banking, taking the total to 16. The Central Bank added the Thai Bhat to the list last year in a direction to be used in offshore banking business scheme. The 16 include the […]
We want to restructure only foreign debt &’s a win-win situation, CB Governor reiterates
Central Bank Governor reiterated on Thursday that the government’s position about debt restructuring remains the same and intends to restructure only the external debt. “What the President recently said was that the financial advisors are looking at the scenarios of any restructuring of domestic debt. But the government position still remains that we intend to […]
Finance Minister requests the public to deposit or sell foreign currency notes in possession
In order to attract foreign currency held with the public into the banking system, the Minister of Finance has issued an Order granting an amnesty period of 1 month effective from 15.08.2022 for persons in, or resident in, Sri Lanka who hold foreign currency notes in possession to: i. Deposit into a Personal Foreign Currency […]
Central Bank relaxes mandatory conversion requirement on service export proceeds
With the view of encouraging service exporters to repatriate their export proceeds into the country, the Central Bank of Sri Lanka has withdrawn the mandatory requirement to convert service export receipts/proceeds, that are received in Sri Lanka on or after 12 August 2022. The service exporters may use their export proceeds so repatriated to Sri […]
Finance Minister of India assures her fullest support to economic recovery process in Sri Lanka
Finance and Corporate Affairs Minister of India Nirmala Sitharaman assured the High Commissioner of Sri Lanka to India, Milinda Moragoda of her fullest support and cooperation in the process of economic recovery in Sri Lanka. The Finance Minister of India gave this assurance when High Commissioner Moragoda called on her on 21 June at the […]
SL CB reassures commitment to ensuring the availability of forex banking system for essential foods
The Ministry of Finance issued Import Control Regulations on Payment Terms No.07 of 2022, dated 06 May 2022, and to be effective from 20 May 2022, by restricting the use of Open Account Payment Terms or Consignment Account Terms, subject to conditions, when importing goods to Sri Lanka. This measure complements the various other measures […]
We will support govt in reinstating previous tax regime & IMF reforms: Eran Wickramaratne
Statement on Sri Lanka Defaulting on Foreign Debt Payments by Eran Wickramaratne M.P., Former State Minister of Finance On 12 April 2022, Sri Lanka suspended repayment on most of the government’s external foreign currency debt, including the International Sovereign Bonds (ISBs) and bilateral debt. With the end of the 30-days grace period since the ISB […]
Sri Lanka CB maintains policy rates
The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 18 May 2022, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at the current levels of 13.50 per cent and 14.50 per cent, respectively. The Board is of […]
Inflation is expected to peak at 29-pct in July; LKR to further depreciate
Inflation is expected to peak at 29% in July owing to potential price hikes in essential commodities like gas, electricity, and fuel prices, the First Capital Research said. CCPI further increased to 18.7% in March, exceeding the CBSL’s and FC Research’s desired range of 4%-6% and 5%-7% respectively. According to First Capital Research, the exchange […]
Sri Lanka suspends normal debt servicing; announces interim policy on servicing external debt
Sri Lanka’s government has suspended the normal debt servicing of all affected debts, for an interim period pending an orderly and consensual restructuring of those obligations in a manner consistent with an economic adjustment program supported by the IMF. Announcing an interim policy regarding the servicing of Sri Lanka’s external public debt, the Ministry of […]