Category: Policy
ADB partnership strategy 2024-28 for SL to foster sustainable recovery, build resilience, and revive growth
The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Sri Lanka covering the period 2024–2028. The strategy will focus on restoring the country’s macroeconomic stability, reviving growth, and establishing the foundation for sustainable recovery and resilience. “This new partnership strategy will build on ADB’s ongoing assistance to support the country’s efforts to […]
‘s growth forecast to 2.2-pct in 2024
In Sri Lanka, growth is expected to turn positive, to 2.2 percent in 2024, a 0.5 percentage point upgrade from the previous forecast, with modest recoveries in reserves, remittances, and tourism. According to the World Bank’s the Sri Lanka Development Update, Bridge to Recovery, released today, inflation is expected to remain within the central bank’s target range and […]
Despite strong growth, South Asia remains vulnerable to shocks: World Bank update
Growth in South Asia is expected to be strong at 6.0 percent in 2024, driven mainly by robust growth in India and recoveries in Pakistan and Sri Lanka. But persistent structural challenges threaten to undermine sustained growth, hindering the region’s ability to create jobs and respond to climate shocks, says the World Bank in its […]
CBSL reduces policy rates by 0.5-pct in view of stable inflation outlook over medium term & subdued demand pressures
The Monetary Policy Board of the Central Bank decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points (bps) to 8.50 per cent and 9.50 per cent, respectively. The Board arrived at this decision following a comprehensive assessment of current and […]
Sri Lanka trade balance deteriorated by 3.6-pct in January 2024
The deficit in the merchandise trade account widened to US dollars 541 million in January 2024 from US dollars 445 million recorded in January 2023, mainly with higher increase in imports. In addition, trade deficit in January 2024 widened compared to the deficit of US dollars 487 million in December 2023. Earnings from merchandise exports […]
Eran: Is Sri Lanka the only country where inflation decreases when commodity prices continue to increase?
Samagi Jana Balawega MP Eran Wickramaratne said that Government by appointing a committee to review the compliance of the MoUs signed with foreign countries proves the government and the administration has no experience international relations. The President within 18 months of his coming to power has visited 14 countries and has signed several Memorandum of […]
CCC Outlook 2024: Anticipated rebound depends crucially on effective debt restructuring
The 9th edition of the annual flagship Outlook Report for 2024 by The Ceylon Chamber of Commerce was recently launched at the Economic Outlook 2024 seminar. Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, delivered the keynote address at the launch event. Compiled by the Economic Intelligence Unit (EIU) of the Ceylon […]
Relaxation of restrictions imposed on standing facilities
The Central Bank of Sri Lanka introduced restrictions on the usage of the Standing Facilities by the Licensed Commercial Banks (LCBs) under the Open Market Operations (OMOs), with effect from 16 January 2023 Accordingly, access to the Standing Deposit Facility (SDF) was limited to a maximum of five (05) times per calendar month, while access […]
‘s economic sovereignty
Sri Lanka, facing internal and external challenges, grapples with the aftermath of its external debt crisis, exacerbating existing economic issues. The Easter attacks, COVID-19 pandemic, global conflicts, and economic mismanagement have pushed Sri Lanka back to seeking IMF assistance. Despite government efforts, widespread poverty persists, exacerbated by low-pay and unemployment. The civil society warnings about […]
Central Bank maintains policy interest rates at their current levels
The Monetary Policy Board of the Central Bank decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels. The Board arrived at this decision following a comprehensive assessment of domestic and international macroeconomic developments in order to maintain inflation at the […]
‘s illicit markets
Research Intelligence Unit (RIUNIT) continues its groundbreaking efforts in shedding light on critical policy matters concerning Sri Lanka’s economic landscape. Their latest series of reports highlights the significance of illicit markets that operate within and beyond the island’s borders. Focused on combating illicit markets and their impact on the nation’s economy, RIUNIT’s latest policy papers […]
IMF Staff Mission Recommends Avoiding Further Monetary Policy Loosening in Sri Lanka
The International Monetary Fund (IMF) staff mission visiting Sri Lanka has concluded that further loosening of monetary policy could be detrimental to the country’s economic recovery and advised against such measures. The mission emphasized the need to avoid “a faster-than-warranted monetary policy loosening” due to the potential for elevated inflation risks.They cautioned that such a […]