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NCPI based Inflation decreased in November 2020

Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) decreased to 5.2 per cent in November 2020 from 5.5 per cent in October 2020. This was due to the statistical effect of the high base prevailed in November 2019. Meanwhile, Food inflation (Y-o-Y) decreased to 9.4 per cent in November 2020 from 10.6 per cent in October 2020, whereas Non-food inflation (Y-o-Y) increased to 1.7 per cent in November 2020 from 1.5 per cent in October 2020.

Provincial Gross Domestic Product - 2019

Nestling the commercial and administrative capital of the country, Western province continued to be the forerunner of the economy. However, its share declined, contributing to narrowing of regional disparity.

Western province secured the largest share (39.1 per cent) of the country’s nominal GDP. However, due to improved contribution from the other provinces, the share declined by 0.5 per cent from 2018. Central (11.5 per cent) and North Western (10.7 per cent) provinces were ranked at second and third positions, respectively.

Appoinment of New Deputy Governors

The Monetary Board, with the concurrence of the Hon. Minister of Finance, has promoted Assistant Governors, Mrs. T M J Y P Fernando and Mr. N W G R D Nanayakkara to the post of Deputy Governor of the Central Bank of Sri Lanka (CBSL) with effect from 14th December 2020.

Sri Lanka Purchasing Managers’ Index - November 2020

PMI for Manufacturing sector expanded in November 2020, while PMI for Services sector edged up compared to the previous month yet remained below the threshold level.

Manufacturing PMI bounced to 57.6 in November 2020 with an increase of 17.3 index points compared to October 2020. The significant increase in new orders, particularly in the manufacture of textile &  wearing  apparel and food & beverages sectors, has mainly contributed to thisconsiderable improvement. Increase in Production  sub-index, mainly on account of the manufacture  of textile  &  wearing  apparel  and  non-metallic  mineral  products sectors, together with lengthening of the Suppliers' Delivery Time across all sectors have alsocontributed to the overall increase in the Manufacturing PMI.

External Sector Performance - October 2020

In October 2020, Sri Lanka’s external sector exhibited its resilience with the successful repayment of the matured International Sovereign Bond (ISB) of US dollars 1.0 billion. During the month, external sector performance was supported by the continued improvement in the trade deficit, increase in workers’ remittances and the resultant stability in the domestic foreign exchange market. While imports continued to be restrained under low global oil prices and import restrictions imposed by the Government, exports dropped in October 2020 due to the disruptions to local production and support services following the resurgence of COVID-19 cases since early October and weak demand from foreign buyers. Workers’ remittances continued to record a year-on-year growth during the month. In the financial account, the Colombo Stock Exchange (CSE) recorded a marginal net foreign investment inflow, while the government securities market recorded a marginal net outflow in October 2020.

Response to the Downgrade of Sri Lanka's Rating by S&P Global Ratings

Following the announcement by S&P Global Ratings downgrading Sri Lanka’s Sovereign rating, the Ministry of Finance has issued a response, which can be found on the link below:

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