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SL Purchasing Managers’ Index (PMI) – May 2026

Purchasing Managers’ Indices indicate improvements in both Manufacturing and Services activities in May 2026.

Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in May 2026, indicating an expansion in manufacturing activities compared to April 2026. All sub-index values recorded above the neutral threshold during the month, contributing to the overall increase in the index value. However, respondents continued to highlight the challenging operating environment associated with the Middle East conflict.

Kasagala Green Plantation (Private) Limited: Statement made at the “Pini Viyana” TV Programme aired on ITN on 08.06.2026

It has been brought to the notice of the Central Bank of Sri Lanka (CBSL) that Mr. Malwattage Ranjith Nandana Pieris, Director of Kasagala Green Plantation (Private) Limited, on 08.06.2026 on “Pini Viyana” television programme on Independent Television Network, Sri Lanka (ITN) had stated, inter alia, that Kasagala Green Plantation (Pvt) Ltd. (KGPL):

Cancellation of the Registration of Co-operative Leasing Company Limited as a Registered Finance Leasing Establishment under the Finance Leasing Act No. 56 of 2000

Co-operative Leasing Company Limited (CLCL), a Registered Finance Leasing Establishment under the Finance Leasing Act, No 56 of 2000, as amended  (FLA), has acted in contravention of the Directions issued by the Director, Department of Supervision of Non-Bank Financial Institutions (DSNBFI) of the Central Bank of Sri Lanka by its repeated failure to comply with the Finance Leasing (Reporting  Requirements) Direction No. 2 of 2010 and had also failed to meet the requirements stipulated by the Central Bank of Sri Lanka on the Masterplan for Consolidation of Non-Bank Financial Institutions (the Masterplan), despite several extensions granted to enable compliance with the same. No satisfactory progress has been made by CLCL to adhere to the Masterplan and in particular, CLCL has failed to develop a viable plan to ensure the sustainability of its business operations.

Financial Sector Performance in the First Quarter of 2026

Financial system remained resilient during the first quarter (Q1) of 2026 amidst challenging global and domestic conditions arising from heightening tension in the Middle East and global uncertainties. Despite global uncertainties and external sector pressures, domestic macrofinancial conditions remained broadly supportive during Q1 of 2026. Credit growth accelerated further during the period, with total credit extended by Licensed Banks (LBs) and Finance Companies (FCs) growing during the period, supported mainly by strong private sector lending. Thus, credit exposures increasingly shifted towards the private sector, while exposures to the Government and public corporations moderated marginally. The sovereign-bank nexus continued to reflect established interlinkages between the sovereign and the banking sector.

Central Bank of Sri Lanka to promote digital payments in Trincomalee

The Central Bank of Sri Lanka (CBSL) has organised a digital payments promotional programme in Trincomalee on the 05th and 06th of June 2026 with the participation of Dr. Nandalal Weerasinghe, Governor of CBSL, and other senior officials of CBSL. The programme targets to raise awareness on digital payment methods among government officials, the business community as well as members of the public. The programme will take place at the car park near the Central Bus Stand of Trincomalee from 9 a.m. to 6 p.m. with the participation of banks, non-bank financial institutions and other stakeholders.

CCPI-based headline inflation accelerated marginally in May 2026

The Colombo Consumer Price Index1 (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained marginally above the target in May 2026, reflecting the impact of upward adjustments to domestic energy prices amidst the ongoing conflict in the Middle East. Accordingly, headline inflation (Y-o-Y) was recorded at 5.5% in May 2026 compared to 5.4% in April 2026.

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