With the release of the Central Bank of Sri Lanka’s (CBSL) monetary policy review, the Monetary Board of CBSL stated that based on current developments and the outlook for key macroeconomic variables, it believes that the continuation of the current monetary stance is suitable.

While inflation continues to decelerate, CBSL expects a temporary increase in the short term as a result of the impact of price revisions to domestic petroleum products, liquefied petroleum gas and milk powder.

CBSL stated that forward-looking indicators suggested an improvement in economic performance due to the “modest recovery in the agriculture sector, and continued positive momentum in the industry and services sectors.”