Category: Policy
Central Bank further reduces policy rates by 2-pct & urges banks to reduce lending rates
The Monetary Board of the Central Bank has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 200 basis points to 11.00 percent and 12.00 percent, respectively. The Board expects that the market interest rates particularly lending rates, will adjust downwards adequately and swiftly and the financial […]
Banks welcome CBSL Governor’s assurances on anticipated Govt. announcement on DDR or DDO
The Sri Lanka Banks’ Association (SLBA) has welcomed the assurance by the Governor of the Central Bank of Sri Lanka (CBSL) Dr Nandalal Weerasinghe that financial sector stability will be maintained, and the clarifications provided by the Governor on the relevant process in this regard. In a statement, the SLBA noted that the Dr Weerasinghe’s […]
Harsha calls for legislative amendment to protect holders of domestic debt in a possible restructure
Opposition Parties Stand United for Careful Domestic Debt Restructuring In a press conference held at the Leader of the Opposition’s office, MP Harsha de Silva, expressed his thoughts and suggestions regarding the upcoming domestic debt-restructuring plan in Sri Lanka. He divulged that opposition parties, while cautious about the potential consequences, would discuss the need for […]
Ceylon Chamber calls for political and public support for debt restructuring process
The Ceylon Chamber of Commerce stresses the importance of patience and trust in the domestic debt restructuring process. As emphasized by the Central Bank of Sri Lanka, priority focus will be on maintaining financial system stability and ensuring that depositors will not be adversely impacted. It is vital that we collectively allow for comprehensive and […]
3 ways to make social protection work for Sri Lanka’s poor and vulnerable: WB
One-fourth of Sri Lankans are living in poverty, yet more than 50% are not covered by social protection schemes Fragmentation and poor governance have resulted in an inefficient social protection system Increased transparency, inclusion, adaptability, and accountability mechanisms such as citizen engagement are essential for building a better social protection system The COVID-19 pandemic and […]
Role of alternative financing mechanisms to address Sri Lanka’s debt overhang
By Imesha Dissanayake The common path followed by almost all IMF member countries in response to sovereign debt crises in recent decades, is to enter into an IMF supported stabilisation and structural adjustment programme. Sri Lanka has been a country that has followed this trend repetitively, having entered into 16 economic stabilisation programmes during 1965-2020, […]
Eran submits VAT amendment bill to restore Parliamentary powers on public finance
Opposition MP Eran Wickramaratne submitted a private members Bill to amend the Value Added Tax (VAT) Act, No 14 of 2002 to transfer the powers vested in the Minister of Finance to Parliament, Friday. The new bill proposes that any order made by the Minister of Finance shall come into force only upon the approval […]
Central Bank commences monetary easing; cuts SDFR & SLFR by 2.5-pct
Sri Lanka’s Central Bank has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 250 basis points to 13.00 percent and 14.00 percent, respectively. The Monetary Board of the Central Bank has arrived at this decision with a view to easing monetary conditions […]
Sri Lanka headline inflation down to 25.2-pct in May 2023
Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 decreased to 25.2 percent in May 2023 from 35.3 percent in the previous month. The decline in the headline inflation is broadly in line with the disinflation path envisaged by the Central Bank of Sri Lanka (CBSL) in […]
Sri Lanka Central Bank assures banking sector stability in debt restructuring process
The Central Bank of Sri Lanka (CBSL) has assured the banks that the regulatory stance in the on-going Domestic Debt Optimization (DDO) discussions with the diverse stakeholders will be that, the banking sector stability cannot be put at risk, a statement said. Presently the banking sector is well capitalized with average Capital Adequacy Ratio over 15% and […]
Eran urges Govt to disclose contents in IMF agreement
Even though the present government said no, the Samagi Jana Balawega emphasized from the beginning that this country needs some sort of agreement and financial assistance from the International Monetary Fund because it gives a signal to the international market that there is a financial discipline in the country paving the way for bilateral and […]
Opinion: HNB reiterates importance of developing a national savings culture
HNB Deputy General Manager – Retail and SME Banking, Sanjay Wijemanne As more Sri Lankans face concerns over their personal financial security, and that of the country, HNB is working to help raise awareness on the opportunities that every Sri Lankan can access, in order to develop their savings habits, and help drive an effective […]