Economy

Sri Lanka’s inflation could rise to 7% amid Middle East conflict and higher fuel prices – CBSL Governor

Published

15 hours ago

June 3, 2026

Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, has warned that the country’s inflation rate could increase to 7% due to the ongoing conflict in the Middle East and rising global fuel prices.

Speaking on the “360” programme aired on TV Derana last night (01), Dr. Weerasinghe stated that although it was initially anticipated that the Middle East conflict would be resolved in the short term, its prolonged duration has had significant repercussions on Sri Lanka’s economy.

He noted that fuel prices have continued to rise, creating upward pressure on inflation. According to the Governor, inflation, which is currently projected at around 5.4% to 5.5%, is likely to increase further if present trends continue.

“We have observed a continuous increase in fuel prices, while consumer demand has not shown any significant decline. Therefore, there is a risk that inflation could move beyond 5% and even reach 7% if these conditions persist,” he said.

Dr. Weerasinghe explained that the Central Bank recently tightened its monetary policy as a precautionary measure to curb inflationary pressures. He added that reducing demand over the coming months would be essential to prevent inflation from accelerating further and to maintain economic stability.

Meanwhile, the Central Bank Governor emphasized that there are no restrictions on remitting legally earned funds to Sri Lanka through the formal banking system.

Economy

New GPS tracking feature introduced for Metro buses

Published

2 days ago

June 2, 2026

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Passengers can now monitor the real‑time locations and arrival times of Metro buses through the LMT GO mobile application, Deputy Minister of Transport Prasanna Gunasena said.

Speaking on the launch of the new facility, Gunasena noted that the GPS‑enabled service allows commuters to check when buses will arrive at their stops, view operating bus and fare details, and track estimated travel times to upcoming destinations.

He further said that the initiative is aimed at providing passengers with a more planned, convenient, and reliable travel experience.

The Deputy Minister urged commuters to download the LMT GO app to make use of the new service.

Economy

Sri Lanka Secures US$695 Million IMF Tranche

Published

7 days ago

May 28, 2026

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Sri Lanka has secured another US$695 million from the IMF after the completion of the fifth and sixth reviews of the country’s reform programme.

The IMF says Sri Lanka’s reform performance remains “generally strong” despite global challenges, but warned that the Middle East conflict and Cyclone Ditwah pose risks to economic recovery.

Economy

IMF Says Sri Lanka’s Policy Framework StrongerThan In The Past

Published

1 week ago

May 27, 2026

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IMF mission chief Evan Papageorgiou painted a firmer, more confident picture of Sri Lanka’s economic policy framework as the Fund’s Executive Board prepares to consider the combined Fifth and Sixth Reviews of the country’s Extended Fund Facility (EFF) on Wednesday, 27 May.

“Sri Lanka’s reform program continues to move forward,” Papageorgiou said, stressing that “Sri Lanka’s policy framework today is considerably stronger than in the past.”

The IMF view, voiced at a critical moment for the island’s finances , frames the coming Board decision as a test of whether progress on macro stability, reserve rebuilding and investor confidence will translate into continued financial support.

The Executive Board’s decision could unlock the sixth and seventh tranches of the EFF, together worth about USD 700 million.

IMF mission chief Evan Papageorgiou said that the authorities’ recent progress in restoring macroeconomic stability and rebuilding reserves has been recognised by the public, investors and stakeholders.

Global shocks continue to pose renewed pressures, but the Fund emphasised that a stronger policy stance means Sri Lanka is better placed to navigate them.