Hot on the heels of the worst ever contraction of 7.8% in 2022, the economy’s struggle is persisting and recovery remains most challenging this year as well judging by the latest update from the Purchasing Managers Indices.

Disputing the grim forecast of Sri Lanka’s exchange rate by Fitch Solutions by the year-end, Central Bank Governor Dr. Nandalal Weerasinghe raised concerns on the basis of the forecast while stressing that such long-term predictions on exchange rate are not prudent.

The new Monetary Law Act, which aims to grant independence to the Central Bank with enhanced accountability, will empower the monetary authority to make unpopular but essential decisions in prioritising price stability in the country under a flexible inflation target framework, a top official said.

Sri Lanka’s economy suffered its worst fall in 2022, with the GDP contracting 7.8 percent as the further quarter economic growth clocked in at negative 12.4 percent.

Sri Lanka’s rupee is set to decline and lose almost a fourth of its value against the dollar by end-2023, according to. Bloomberg report.

India and Sri Lanka has agreed to expedite the completion of the housing project for the benefit of workers living in plantation areas.

High Commissioner of India Gopal Baglay and Minister of Water Supply and Estate Infrastructure Development, . Jeevan Thondaman exchanged diplomatic notes, paving way for a three-fold increase in unit cost of a house under Phase-3 of Indian Housing Project (IHP).

Sri Lanka is targeting US$1 billion monthly foreign inflow from worker remittance by end-2023 following its achievement of $800 million foreign inflows with more people leaving the island nation for offshore jobs and due to a sending money by expatriates via formal channels, Foreign Employment and Labour Minister Manusha Nanayakkara said.

Several credit card issuers have lifted the limits that hitherto had on overseas use, as they saw their foreign currency conditions improving substantially in the recent times, providing them a lot more room to allow their cardholders with higher spending thresholds when they travel overseas.

The prime rate fell sharply, despite the Central Bank half-heartedly raising the key policy rates by 100 basis points, reflecting that the most recent policy move is entirely symbolic and has no real impact on the markets.