Port City Colombo announced that Parliament officially passed two key offshore banking regulations, Offshore Banking and Offshore Banking – Prudent Management and Confidence, on September 4, 2024. This significant development aligns with Port City Colombo’s ambition to establish itself as a prominent regional financial centre, attracting increased Foreign Direct Investment (FDI) into Sri Lanka. Seven
The Cabinet of Ministers has approved the establishment of a Financial Stability Fund aimed at strengthening Sri Lanka’s bank resolution framework as part of the Central Bank of Sri Lanka’s (CBSL) financial crisis management program. The initiative will begin with an initial allocation of Rs. 1 billion from the Ministry of Finance, Economic Stabilisation, and
In a special session held on Tuesday, Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), provided a comprehensive briefing to Members of Parliament on the measures taken to stabilise the country’s economy. This session, chaired by Speaker Mahinda Yapa Abeywardena, was conducted in accordance with Section 80 (2) (a) of the
A broader conflict in the Middle East could significantly impact Sri Lanka’s tea exports, petroleum imports, and remittance inflows, according to the Central Bank of Sri Lanka (CBSL). The CBSL highlighted that the country has substantial trade exposure to the region, with nearly 46% of its tea exports directed to Middle Eastern markets. Additionally, tea
Sri Lanka’s headline inflation, measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100), dropped sharply to 0.5% in August 2024 from 2.4% in July 2024. This significant decline aligns with the Central Bank of Sri Lanka’s (CBSL) projections. Food inflation (Y-o-Y) decreased to 0.8% in August from 1.5% in July,
Sri Lanka experienced a significant increase in loan demand across the retail, corporate, and small and medium enterprise (SME) sectors during the second quarter of 2024, according to a recent survey by the Central Bank of Sri Lanka. This uptick is attributed to lower interest rates and stable exchange rates, reflecting improved economic confidence and
People’s Leasing & Finance PLC (PLC), a leading non-bank financial services institution and a subsidiary of People’s Bank, has announced the appointment of Sanjeewa Bandaranayake as its new Chief Executive Officer (CEO) and General Manager (GM), effective August 6, 2024. This appointment has received the approval of the Central Bank of Sri Lanka. Bandaranayake, who
Last week, the Central Bank of Sri Lanka reaffirmed its stance against regulating interest rates, opting to let market forces dictate the rates. Central Bank Governor Dr. Nandalal Weerasinghe emphasized that the bank has no intention of intervening in interest rate setting, despite ongoing delays in how quickly banks pass on monetary policy benefits to
The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on July 23, 2024, decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25 basis points (bps) to 8.25 percent and 9.25 percent, respectively. This decision followed a careful assessment of current