CBSL releases Monetary Policy Report

COLOMBO (News 1st); The Central Bank of Sri Lanka has released its first Monetary Policy Report for 2025.

Key highlights from the first Monetary Policy Report for 2025 released by the Central Bank of Sri Lanka includes:

• The monetary policy stance was further eased in late 2024, while the accommodative monetary policy stance continued into January 2025.

• The Central Bank implemented a single policy interest rate mechanism, introducing the Overnight Policy Rate as the primary monetary policy tool.

• Headline inflation (year-on-year) remained in the negative territory since September 2024 mainly due to significant reductions in energy prices.

• Following the projected near term deflation in early 2025, headline inflation is forecast to increase and converge to the targeted level of 5 per cent over the medium term.

• Economic activity continued its recovery in 2024, supported by eased monetary conditions and improving investor confidence.

• With the effective implementation of necessary structural reforms and growthoriented policies, the growth momentum of the economy is expected to continue.