CBSL keeps policy rate at 7.75%

The Monetary Policy Board of the Central Bank of Sri Lanka has decided to keep its Overnight Policy Rate (OPR) unchanged at 7.75%.

The decision was made to help guide inflation towards its 5% target.

The board noted that headline inflation, as measured by the Colombo Consumer Price Index (CCPI), turned positive in August, ending 11 months of deflation.

The economy is estimated to have grown by 4.8% in the first half of 2025, a momentum that appears to have continued into the third quarter.

The Central Bank also noted that the external sector remains resilient, with official reserves at $ 6.2 billion by the end of August.

The Sri Lankan rupee remains broadly stable, and all three major rating agencies have now upgraded the country’s sovereign ratings.