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Sri Lanka Sees Decline in Foreign Reserves for September 2026; Central Bank Acquires US Dollars
FINANCIAL CHRONICLE – By the close of September 2026, Sri Lanka’s foreign reserves experienced a 1.1 percent decline, totaling US$ 6.851 billion, down from US$ 6.929 billion the previous month. This decrease occurred despite the Central Bank’s net acquisition of US$ 64.2 million in foreign currency during the same period. The Central Bank has been…
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Sri Lanka’s Capital Expenditure Reaches Below 30% of 2026 Budget by September, According to Sources
FINANCIAL CHRONICLE – According to two government sources, Sri Lanka has utilized less than 30 percent of its allocated capital expenditure for 2026. The government anticipates that it will fully expend the budget before the end of the current year. The capital spending allocation for 2026 stands at Rs.1,380 billion; however, approximately Rs.385 billion has…
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Sri Lanka’s Central Bank steadfastly upholds its 5% inflation goal
FINANCIAL CHRONICLE – The Central Bank of Sri Lanka has firmly upheld its 5% inflation target, which it has established in collaboration with the government for the upcoming three years, labeling it as the sole “optimal solution.” The Bank dismissed assertions that this target is excessively high and detrimental to the purchasing power of the…
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Sri Lanka and IMF Engage in Discussions for New Long-Term Growth Agreement Post-March 2027, According to Minister
FINANCIAL CHRONICLE – Sri Lanka is currently engaged in discussions with the International Monetary Fund (IMF) regarding a new program following the conclusion of the existing Extended Fund Facility (EFF), as stated by Deputy Finance Minister Anil Jayantha during a parliamentary session on Thursday. In response to an inquiry from the opposition, the Deputy Minister…
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Survey Reveals Enhanced Confidence Among Sri Lankans in Financial System Stability for Second Half of 2026
FINANCIAL CHRONICLE – A recent Systemic Risk Survey (SRS) carried out by the central bank indicates that Sri Lankans have shown an enhanced level of confidence in the stability of their financial system for both the short and medium terms during the second half of 2026. This improvement comes despite ongoing global macroeconomic uncertainties and…
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Sri Lanka Gears Up for Its Third Assessment on Anti-Money Laundering and Counter-Terrorism Financing
FINANCIAL CHRONICLE – Sri Lanka is gearing up for its third assessment concerning adherence to international Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) protocols, which is set to take place from October 26 to November 6, as reported by the media division of President Anura Kumara Dissanayake. A meeting led by Dissanayake addressed…
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Sri Lanka Evaluates 2026 Capital Expenditures; Minister Expresses Confidence in Optimal Utilization
FINANCIAL CHRONICLE – The Sri Lankan government’s capital expenditure for 2026 is currently being assessed, with hopes that the entire budget of Rs. 1,380 billion will be utilized effectively, according to Cabinet Spokesman and Media Minister Nalinda Jayatissa. Concerns have been raised regarding the potential for underutilization of this fund. As of mid-June, only 17.4…
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Despite signs of economic improvement, 40% of Sri Lankans remain in poverty or at risk, according to World Bank findings.
FINANCIAL CHRONICLE — Despite Sri Lanka’s economy bouncing back to its size from 2018 and regaining its status as an upper-middle-income nation, a significant portion of the population—two out of every five individuals—continues to face poverty or the risk of falling into it, according to the latest Development Update from the World Bank. The World…
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Sri Lanka Achieves Uncommon Surplus While Only 8% of Cyclone Ditwah Recovery Funds Have Been Utilized, Reports World Bank
FINANCIAL CHRONICLE — In the first half of 2026, Sri Lanka experienced an unusual budget surplus, attributed to robust tax revenue and significant delays in government expenditures, particularly concerning emergency reconstruction funds, according to the World Bank’s latest report titled “From Recovery to Transformation,” published in October 2026. By mid-year, the government had only allocated…
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World Bank Reports Sri Lanka’s Economic Output Reaches 2018 Levels, Cautions That Recovery is Still Ongoing
Sri Lanka’s economy has returned to levels seen before the recent crisis, with a projected real gross domestic product (GDP) growth of 4.4% for this year, surpassing previous estimates. Despite this positive development, the World Bank has indicated that the recovery is still uneven and not fully realized. According to the latest report from the…
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Sampath Bank and Bancstac Join Forces to Introduce Google Pay for Merchants in Sri Lanka
FINANCIAL CHRONICLE – Sampath Bank, a prominent financial institution in Sri Lanka, has integrated Google Pay into its Internet Payment Gateway (IPG), a service provided by Bancstac. This development allows businesses to facilitate payments via Google Pay on various platforms, including e-commerce websites, mobile applications, and digital billing invoices. Customers are now able to enjoy…
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Fitch Predicts Growth for Sri Lanka’s Islamic Finance Sector Beyond Its Current Scale
Fitch Ratings, based in Dubai and Jakarta, has projected that Sri Lanka’s Islamic finance sector will experience growth in the medium term, bolstered by advancements in regulations, an increasing political commitment, and the participation of conventional banks through Islamic windows. As of the end of the first half of 2026, the Islamic finance sector in…
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Sri Lanka Secures Preliminary Accord with IMF for Seventh Assessment Prior to Budget Announcement
FINANCIAL CHRONICLE — Sri Lanka has successfully negotiated a staff-level agreement regarding economic policies, marking the conclusion of the seventh review of its four-year Extended Fund Facility (EFF) with the International Monetary Fund (IMF). This agreement paves the way for a potential disbursement of approximately SDR 254 million (around US$345 million) pending approval from the…
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IMF Highlights Sri Lanka’s Reform Advancements at Sampath Bank Economic Forum
FINANCIAL CHRONICLE – Martha Tesfaye Woldemichael, the IMF Resident Representative in Sri Lanka, has clarified that the lack of a staff-level agreement does not necessarily indicate that the International Monetary Fund’s Extended Fund Facility (EFF) program is failing to progress. During her remarks at the Sampath Bank Economic Forum 2026, she explained that negotiations may…
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Sri Lanka Central Bank Anticipates Reduction in Middle East Tensions to Influence Inflation Forecast: Official Statement
Sri Lanka’s Central Bank is optimistic that the ongoing conflict in the Middle East will subside, which may contribute to reducing inflation to the targeted 5 percent by the second quarter of next year, according to a senior official from the bank. The Central Bank anticipates that inflation will remain in the high single digits…