The Monetary Policy Board of the Central Bank of Sri Lanka has decided to keep the Overnight Policy Rate unchanged at 7.75 percent.
The decision, taken at its meeting yesterday, comes after reviewing domestic and global economic conditions. The Board noted that the current policy stance is consistent with its objective of guiding inflation towards the 5 percent target.
The Bank said headline inflation, measured by the Colombo Consumer Price Index, returned to positive territory in August 2025 after eleven months of deflation. Inflation is forecast to rise gradually, reaching the target by mid-2026. Core inflation is also expected to strengthen with domestic demand and later stabilise around the headline target.
The Central Bank added that medium-term inflation expectations remain anchored, reflecting confidence in its policy direction.
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