The Central Bank of Sri Lanka (CBSL) has decided to maintain its Overnight Policy Interest Rate at 7.75 per cent.

The decision was taken after carefully assessing domestic economic conditions, evolving developments, and prevailing global uncertainties.

The Monetary Policy Board stated that the current policy rate level will help steer inflation towards the target of 5 per cent.

Despite the recent impact of Cyclone Ditwah, inflation expectations remain well anchored around the target.

Inflation, as measured by the Colombo Consumer Price Index (CCPI), remained unchanged at 2.1 per cent in December 2025.

However, food prices increased in December compared to November due to supply chain disruptions caused by Cyclone Ditwah and higher seasonal demand during the festive period.

Core inflation is expected to accelerate further as economic demand continues to strengthen.

The economy recorded growth of 5.0 per cent during the first nine months of 2025, and although economic activity slowed following Cyclone Ditwah in late 2025, early indicators suggest the economy remains resilient.