The Central Bank released its first Monetary Policy Report for 2025 in keeping with the requirements of the Central Bank of Sri Lanka Act, No. 16 of 2023. The Monetary Policy Report is published biannually, and the content of the current Report is based on information, which the Monetary Policy Board of the Central Bank considered in formulating the monetary policy decision during the January 2025 review.

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 fifth consecutive month, recording a deflation of 4.0% in January 2025 compared to the deflation of 1.7% in December 2024.