As enunciated in the Central Bank’s Annual Policy Statement in January 2024, the domestic foreign exchange (FX) market, mainly comprising the Central Bank of Sri Lanka (CBSL), all Licensed Commercial Banks (LCBs) and the National Savings Bank (NSB), has successfully adopted the FX Global Code (FXGC), thereby adhering to a common set of guidelines to further promote the integrity and effective functioning of the domestic FX market. The adoption of FXGC in the domestic FX market, which stems from an initiative taken by the CBSL and the support from the Sri Lanka Forex Association (SLFA), marks a significant advancement in the domestic FX market.

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)1 remained in the negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024 compared to the deflation of 0.8% in October 2024.