CBSL Keeps Overnight Policy Rates Unchanged
The Central Bank of Sri Lanka has decided to maintain it's Overnight Policy Interest Rate at the current level of 7.75%. The decision comes after thorough consideration of evolving developments and the outlook on the domestic front and global uncertainties. The Monetary Policy Board of the CBSL states that the current level policy rate will support steer inflation towards the target of 5%. Meanwhile, despite recent hit to the country by Cyclone Ditwah, the inflation expectations appear to be well anchored around the inflation target.Inflation measured by the Colombo Consumer Price Index (CCPI) remained unchanged at 2.1% in December 2025. However, the food prices edged higher in December compared to November, due to supply chain disruptions caused by Cyclone Ditwah and higher demand for food during the festive season. Core inflation is expected to accelarate further as demand in the economy strengthens. The economy grew by 5.0% during the first nine months of 2025 and despite the slowdown in economic activity following Cyclone Ditwah in late 2025, early indicators reflect greater resilience.
