CBSL keeps 7.75% monetary policy rate unchanged

Overnight Policy Rate unchanged at 7.75% to steer inflation towards 5% target mid-2026 Estimates 4.8% 1H GDP growth, and 4.5% for full year CBSL Governor Dr. Nandalal Weerasinghe says SL exceeds IMF reserve target, defends GDP growth projection Notes crypto currencies cannot be used as legal tender

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THE Central Bank of Sri Lanka (CBSL) yesterday said that its Monetary Policy Board has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75% at its meeting held on Tuesday.

"The Board arrived at this decision after carefully considering both domestic and global developments, and was of the view that the current monetary policy stance will support steering inflation towards the target of 5%," the CBSL said in a statement.

Headline inflation based on the Colombo Consumer Price Index (CCPI) turned positive in August 2025, ending 11 months of deflation. Inflation is projected to gradually increase towards the target of 5% by mid-2026.

Reflecting strengthening domestic demand, core inflation is also expected to pick up, and stabilise thereafter around the headline inflation target. Medium-term inflation expectations remain anchored around the inflation target.

The economy is estimated to have grown by 4.8% in H1-2025 with GDP growth estimated at 4.5% for the full year.