The Central Bank of Sri Lanka (CBSL) has decided to maintain the Overnight Policy Rate (OPR) at 7.75%, following its Monetary Policy Board meeting held yesterday (27).
The CBSL said the decision was taken after carefully assessing domestic economic developments and prevailing global uncertainties. The Board believes the current monetary policy stance will help guide inflation towards its medium-term target of 5%.
Inflation, as measured by the Colombo Consumer Price Index (CCPI), remained unchanged at 2.1% in December 2025. However, food prices recorded an increase compared to November, mainly due to supply chain disruptions caused by Cyclone Ditwah and higher seasonal demand during the festive period.
The Central Bank projects that inflation will gradually accelerate and move closer to the 5% target by the second half of 2026. Core inflation, which excludes volatile food, energy and transport prices, has also shown an upward trend in recent months and is expected to rise further as economic demand strengthens.
Meanwhile, the economy recorded a growth of 5.0% during the first nine months of 2025. Although Cyclone Ditwah affected economic activity in late 2025, early indicators suggest improved resilience. The CBSL also noted continued expansion in private sector credit disbursed by commercial banks and other financial institutions.
The Monetary Policy Board reiterated that it stands ready to take appropriate policy action to ensure inflation remains stable around the target while supporting the economy to achieve its full potential.
