The Central Bank of Sri Lanka (CBSL) has decided to keep the Overnight Policy Rate (OPR) unchanged at 7.75%, following the Monetary Policy Board meeting held yesterday .
The decision was made after reviewing recent domestic and global economic developments. The Board noted that the current monetary policy stance remains appropriate for guiding inflation toward the target of 5%.
Headline inflation, measured by the Colombo Consumer Price Index (CCPI), continued to rise in October for the third consecutive month. The CBSL expects inflation to increase more gradually than previously forecast and move toward the target by the second half of 2026. Core inflation is also projected to pick up modestly as economic demand strengthens, with medium-term inflation expectations remaining anchored around the target.
The Central Bank added that leading indicators point to sustained economic growth, with private sector credit recording a notable and broad-based increase in 2025, supported by the prevailing low-interest-rate environment.
The CBSL said it will continue to closely monitor incoming data on domestic and global economic conditions and emerging risks. The Monetary Policy Board remains ready to take appropriate action to ensure inflation stabilises around the target while supporting the economy’s growth potential.
