The Central Bank of Sri Lanka (CBSL) has decided to maintain the Overnight Policy Rate at 8.75%, citing evolving domestic and global economic conditions.
The Monetary Policy Board noted that domestic economic activity remained resilient, with the economy recording 4.7% year-on-year growth in the first half of 2026.
Headline inflation rose to 8% in August 2026, while the CBSL expects inflation to remain in the high single digits through the first quarter of 2027 before gradually easing towards the 5% target.
Gross official reserves increased to US$6.9 billion at the end of August, while the Central Bank stated that it will continue to adopt a forward-looking and data-dependent approach to monetary policy.
Source : The Morning News