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SL Purchasing Managers’ Index (PMI) – October 2024

Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in October 2024.

Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) increased to 58.1 in October 2024, indicating a further expansion in manufacturing activities. This improvement was mainly driven by the seasonal demand, with positive contributions from all the sub-indices.

Financial Intelligence Unit of Sri Lanka entered into a Memorandum of Understanding with the National Secretariat for Non-Governmental Organizations

The Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the National Secretariat for Non-Governmental Organizations on November 04, 2024 at the Central Bank of Sri Lanka (CBSL) to exchange information on investigations and prosecutions of Money Laundering (ML), Terrorist Financing (TF) and related crimes and of any persons connected thereto. This MOU has been entered into by the FIU, in terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006.

CCPI based headline inflation remained in the negative territory in October 2024

In line with the Central Bank’s near term projections, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) remained in the negative territory for the second consecutive month, recording a deflation of 0.8% in October 2024 compared to 0.5% in September 2024.

External Sector Performance - September 2024

The external sector continued to record a notable improvement so far in 2024 compared to the corresponding period in 2023. The merchandise trade deficit widened in September 2024 (y-o-y), recording the highest monthly trade deficit thus far in 2024.

SL Purchasing Managers’ Index (PMI) for Construction Industry – September 2024

Sri Lanka Purchasing Managers’ Index for Construction (PMI - Construction) indicates a decline in construction activities in September 2024, as reflected by the Total Activity Index, which recorded an index value of 48.6. Many survey respondents observed a slight moderation in construction activities during the month, particularly attributable to the election-related disruptions.

An Explanatory Note on Central Bank of Sri Lanka's Open Market Operations (OMOs) and Money Printing

There have been recent claims in the media that the Central Bank of Sri Lanka (CBSL) has "printed" Rs. 100 billion on 25 October 2024, through its Open Market Operations (OMOs). It is important to clarify that these claims are not accurate and are baseless. The liquidity (money) injected through OMOs is a routine central banking function aimed at managing adequate liquidity in the banking system for the purpose of stabilizing the short-term interest rates in the economy and ensuring price stability, and hence it should not be grossly misinterpreted as "money printing."

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