Inflation in the Colombo district decreased in September, following a significant slowdown in August, as both food and non-food prices declined due to increased supply conditions and reductions in fuel prices and water tariffs. According to the Colombo Consumer Price Index (CCPI), the key inflation measure, prices fell by 0.5% in September 2024 compared to
Investor sentiment experienced a brief pause following the significant buying momentum observed in recent days, suggesting a period of stabilization ahead of the upcoming Treasury bill auction. In the secondary market, three-month and six-month T-bills were traded at 10.00% and 10.25%, respectively, with limited activity. The T-bill maturing on December 15, 2026, traded at 10.75%.
Sri Lanka’s central bank announced that it would maintain policy interest rates between 8.25% and 9.25%, citing the likelihood of deflation in the near term due to easing supply conditions and adjustments to administratively controlled prices. “The Board observed that inflation is likely to remain well below the 5% target over the next few quarters,
In August 2024, Sri Lanka’s national consumer prices eased to 1.1% year-on-year, down from 2.5% in July. This significant deceleration was driven primarily by declining food prices and reduced electricity tariffs, offering financial relief to consumers. On a month-to-month basis, consumer prices fell by 1.4% in August, accelerating from the 0.6% decline recorded in July.
The United States has reaffirmed its support for the people of Sri Lanka in their efforts to build “an inclusive, just, democratic, and economically sustainable future,” according to Senator Ben Cardin, Chair of the Senate Foreign Relations Committee. This statement comes as Sri Lanka continues to recover from a devastating economic crisis in 2022, which
As of July 2024, Sri Lanka’s central bank continues to face a challenging financial situation, with net foreign reserves remaining in the negative at US$728 million. This represents a significant improvement from mid-2022, when net foreign assets were deeply negative at US$4.6 billion. The drastic decline in reserves in 2022 was driven by borrowing through
First Capital (FC) anticipates that bank lending rates will remain within the 9-11% range for the rest of 2024 and rise slightly to 10-12% by mid-2025. This projection comes amidst slow economic conditions, weak demand for credit, and a lag in the reduction of new loan rates. The Average Weighted Prime Lending Rate (AWPLR) dropped
Sri Lanka’s private sector credit expanded by Rs. 60 billion in July 2024, following a Rs. 74 billion rise in June, according to official data. Meanwhile, credit to state-owned enterprises (SOEs) decreased during the same period. In July, banks extended Rs. 82.7 billion in loans to the government, with much of this being interest roll-overs,
Sri Lanka’s economy will remain stable under the National People’s Power (NPP) administration, according to party leader Anura Kumara Dissanayake. Addressing the business community, Dissanayake emphasized that while economic changes will be made, they will be carefully assessed to prevent any destabilization. Dissanayake assured that the NPP’s approach is not driven by populist politics, citing
Sri Lanka’s banking sector outlook has stabilized, with the Central Bank’s decision to prevent dividend repatriation playing a key role in the sector’s recovery. According to Maninda Wickramasinghe, Managing Director and CEO of Fitch Ratings Lanka Ltd., Sri Lanka can expect a sovereign rating upgrade immediately after the completion of its debt restructuring. At an