Latest news with #CBSL
The Star
4 days ago
- Business
- The Star
Sri Lankan workers remit over 635 mln USD in June
COLOMBO, July 12 (Xinhua) -- Sri Lankan workers sent 635.7 million U.S. dollars in remittances in June, up more than 22 percent from June 2024, according to the latest data from the Central Bank of Sri Lanka (CBSL). Total remittances for 2024 reached 6.57 billion dollars. Between January and June 2025, remittances totaled more than 3.7 billion dollars, marking an 18.9 percent increase compared to the same period last year, according to CBSL figures. Remittances continue to be a key source of foreign income for Sri Lanka. A total of 312,836 Sri Lankans left the country for overseas employment during the year, according to official data.
Reuters
09-07-2025
- Business
- Reuters
Sri Lanka's central bank chief says monetary policy in right balance
SINGAPORE, July 9 (Reuters) - Sri Lanka has the right balance of monetary policy at the moment, and domestic inflation is expected to turn positive around next month, Central Bank of Sri Lanka Governor P. Weerasinghe said on Wednesday. Sri Lanka's inflation, which was minus 0.6% year-on-year in June, is expected to reach the central bank's target of 5% in the next four to six quarters, Weerasinghe said on a panel at the Reuters NEXT Asia summit in Singapore. "I think we are in a right balance in the monetary policy. We have some space if we are to relax further, but I think right now we have a cautious approach," he added. Supported by a $2.9 billion programme from the International Monetary Fund, Sri Lanka has steadily recovered from a financial crisis caused by a severe shortfall of foreign exchange reserves three years ago. The island nation's economy recovered to grow 5% in 2024, and the World Bank predicts it will expand 3.5% this year. Buoyed by low inflation, the CBSL cut policy rates by 25 basis points in May to promote growth. Growth for this year is expected to be between 4% and 5%, Weerasinghe said. But Sri Lanka's economic and social stability is vulnerable to global trade risks, the IMF said while approving the fifth review of its bailout last week. Before they were suspended for three months, U.S. import tariffs of 44% on Sri Lanka threatened to affect about $3 billion of the island nation's exports and possibly undermine its economic recovery. The CBSL is closely monitoring the impact of U.S. tariffs on Sri Lanka, Weerasinghe said, while noting that monetary policy was mainly focused on the domestic economy. To view the live broadcast of the World Stage go to the Reuters LIVE page:
Zawya
26-03-2025
- Business
- Zawya
Sri Lanka central bank holds rate to support economic recovery
COLOMBO - Sri Lanka's central bank kept its key policy rate unchanged for a second consecutive meeting on Wednesday to underpin the island nation's economic recovery from its worst financial crisis in decades. The overnight policy rate, introduced in November, was held steady at 8% - in line with a majority of economists polled by Reuters. "The Board remains confident that the prevailing monetary policy stance will ensure that inflation will move towards the target of 5% while supporting the growth of the domestic economy," the central bank said in its statement. The South Asian nation posted a better-than-expected 5% gross domestic product growth in 2024, signalling a turning point for an economy that plunged to its worst financial crisis in decades three years ago. Sri Lanka's consumer price index contracted 4.2% year-on-year in February, largely driven down by a reduction in household power tariffs by 20% at the start of the year. The nation suffered record inflation during the 2022 economic meltdown that was triggered by a precipitous fall in dollar reserves. Inflation is expected to reach positive territory by the middle of 2025 and track closer to the central bank's target of 5%, the bank's statement added. "If Inflation falls below target by mid-year there is a likelihood that CBSL will cut rates," said Udeeshan Jonas, strategy head at Colombo-based equity research firm CAL. "Given the possibility of global commodity prices remaining low and concerns about a global trade slowdown there is a likelihood that inflation can trend lower than the target." Sri Lanka's economy has made a "remarkable" recovery from the crisis, the IMF said earlier this month, while approving a fourth tranche of $334 million under the $2.9 billion programme. The central bank expects growth to be above 3% in 2025 due to the higher year-ago base effect and as the economy navigates global headwinds. (Reporting by Uditha Jayasinghe, editing by Swati Bhat and Shri Navaratnam)
