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CB eases lending and deposit interest rates

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The Monetary Board of the Central Bank of Sri Lanka decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 250 basis points to 13.00 per cent and 14.00 per cent, respectively, CBSL said in a statement on Thursday.

The decision was taken at the Monetary Board meeting held on May 31, 2023, CBSL said.

The Monetary Board arrived at this decision with a view to easing monetary conditions in line with the faster than expected slowing of inflation, gradual dissipation of inflationary pressures and further anchoring of inflation expectations, the CBSL said.

The commencing of such monetary easing is expected to provide an impetus for the economy to rebound from the historic contraction of activity witnessed in 2022, while easing pressures in the financial markets, the bank said.

The bank said in May, headline inflation based on the Colombo Consumer Price Index (CCPI), continued the deceleration path, faster-than-projected earlier, supported by the lagged impact of tight monetary and fiscal policies, strengthening of the Sri Lanka rupee, reduction in fuel and gas prices, normalisation of food prices and the favorable impact of the statistical base effect.

The full pass through of the large appreciation of the exchange rate observed recently is yet to be reflected in the price levels, and it would quicken the disinflation process, as the prices of imported goods are expected to decline further in the period ahead, the bank added.

Accordingly, as per the latest projections of the Central Bank, headline inflation is forecast to reach single digit levels in early Q3-2023, and stabilize around mid-single digit levels over the medium term, the CBSL said.

During the four months ending April 2023, the trade deficit decreased notably, compared to a year earlier, reflecting mainly the subdued import expenditure, which outweighed the impact of moderation of external demand for merchandise exports.

The downward adjustment in market interest rates will accelerate in line with the envisaged single digit inflation, thereby supporting credit to the private sector and softening the pressures in the financial sector, the CBSL added.

Both deposit and lending interest rates have continued to adjust downwards with the market guidance provided by the Central Bank along with the improvement in liquidity conditions of the domestic money market, CBSL said. Sri Lanka increased its interest rates in early 2022 to deal with rising inflation.



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Construction and Concrete waste recycling centre opened in Ekala under the Clean Sri Lanka programme

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A recycling centre for the management of construction and demolition (C&D) waste, established in line with the Clean Sri Lanka national programme, was declared open this morning (08) at the Ekala Industrial Zone.

The Clean Sri Lanka Secretariat has allocated Rs. 200 million for this project. Established within the precast yard premises belonging to the State Engineering Corporation under the Ministry of Housing, Construction and Water Supply, the project marks a significant step towards a sustainable environmental transformation in Sri Lanka’s construction sector.

Globally, the construction industry accounts for 40% of total waste generation and 25% of carbon emissions. In Sri Lanka, nearly 300 tonnes of such waste are collected daily from the Western Province alone.

Until now, the indiscriminate disposal of such debris has contributed to soil pollution, water contamination and increased flood risks. Under this project, however, such waste will be transformed into valuable raw materials through modern technology. This initiative is expected to minimise the depletion of natural resources while significantly reducing construction costs.

The centre, which is being operated with the full involvement of the State Engineering Corporation, has been provided with machinery and land valued at Rs. 350 million. In addition to the recycling plant, which has a capacity of 200 metric tonnes per hour, a modern laboratory and an administrative building have also been constructed. Under the “Clean Sri Lanka” programme, Rs. 200 million has been allocated for the project, of which Rs. 150 million has already been released.

There are also plans to expand research activities in the future by engaging engineering faculties of State universities in the programme. The support and contribution of all construction contractors and stakeholders are expected in building a circular economy within the construction sector while safeguarding natural resources for future generations.

Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Deputy Minister of Environment Anton Jayakody, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath, Deputy Minister of Labour Mahinda Jayasinghe, Member of Parliament Najith Indika, Additional Secretary to the President at the Clean Sri Lanka Secretariat S.P.C. Sugeeshwara, Additional Director General of the Clean Sri Lanka Secretariat Kapila Senarath, Director (Environmental) of the Clean Sri Lanka Secretariat Anjula Premarathna, Chairman of the State Engineering Corporation Engineer Neranjan Fernando and Deputy General Manager of the State Engineering Corporation Charuka Hettiarachchi, along with several others, were present at the occasion.

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President of the Socialist Republic of Vietnam pays floral tribute to the Ho Chi Minh Statue

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President of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam, To Lam, who is on a State visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, paid floral tribute this morning (08) to the statue of Ho Chi Minh situated within the premises of the Colombo Public Library.

Upon arriving at the Colombo Public Library, President To Lam was warmly received by President Anura Kumara Dissanayake, while a group of children holding the national flags of both countries stood along the route to welcome the Vietnamese President.

Following the floral tribute to the Ho Chi Minh statue, President To Lam also viewed a collection of paintings created by schoolchildren.

Thereafter, the Vietnamese President attended the ceremony marking the commencement of the expansion of the “Vietnam–Ho Chi Minh Space” located at the Colombo Public Library, where he also viewed a collection of historical photographs on display.

On the occasion, Chief Librarian of the Public Library, Mrs Varuni Gangabadarachchi, briefed those present on the architectural plans prepared for the renovation and expansion project of the Ho Chi Minh Space. A donation of US$50,000 for the project was also presented to the Mayor of Colombo, Mrs Vraie Cally Balthazaar, by  Nguyen Huu Nghia, Member of the Central Committee of the Communist Party of Vietnam and Auditor General of the State Audit Office of Vietnam.

Minister of Environment, Dr Dhammika Patabendi, Mayor of Colombo Mrs Vraie Cally Balthazaar, Deputy Mayor Hemantha Werakoon and several others were also present at the occasion.

[PMD]

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Urgent reforms needed to eradicate drug menace, says President

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President Anura Kumara Dissanayake has instructed officials to swiftly introduce all necessary reforms, including amendments to existing laws, in order to eliminate the drug menace from the country.

The President issued these instructions while attending the meeting of the “Ratama Ekata” National Steering Council convened on Thursday (07) morning at the Presidential Secretariat to discuss efforts aimed at eradicating the drug menace.

He also directed the relevant authorities to take all necessary steps to expedite the process of destroying seized narcotics as quickly as possible under proper legal procedures, thereby preventing them from re-entering society and to accelerate the process of punishing offenders.

The President emphasised the need to speed up this process in order to build public confidence, as well as the confidence of the teams engaged in operations, noting that the successful implementation of the “Ratama Ekata” national initiative would thereby be strengthened through collective participation.

The progress of anti-narcotics operations carried out under the “Ratama Ekata” national initiative, including raids and arrests, was extensively reviewed at the meeting. Officials pointed out that raids related to narcotics had increased by 80% since the launch of the programme.

Since the launch of the “Ratama Ekata” national operation on 30 October 2025, authorities have seized 5,437.457 kilogrammes of cannabis, 1,936.325 kilogrammes of heroin, 1,991.414 kilogrammes of crystal methamphetamine (“ice”), 271.724 kilogrammes of cocaine, 1,574,895 narcotic pills, and 629,988 illicit cigarettes. A total of 168,460 suspects have also been arrested in connection with these offences.

The current progress of the legal amendments required to eradicate the narcotics menace from the country was reviewed at the meeting, and it was noted that steps had been taken to submit the Rehabilitation (Amendment) Bill No. 54 of 2007 to the Cabinet in due course. Discussions were also held regarding the rehabilitation process, the strategies that could be adopted in that regard, and the measures taken to develop related facilities.

It was further revealed that, at Divisional Secretariat level, 25 families most severely affected by narcotics in each division had been selected for attitude development programmes. The President stressed the importance of implementing all such programmes through local religious centres.

The President also made clear that anti-drug awareness programmes should not merely be limited to conducting awareness campaigns, but should include continuous follow-up to assess whether the message had been properly communicated to society and to monitor progress. He highlighted the importance of maintaining this mechanism continuously with the involvement of religious leaders, including members of the Maha Sangha in the respective areas.

The President also inquired into measures being taken to establish a separate court for narcotics-related cases, expedite the receipt of Government Analyst reports, and accelerate the filing of cases.

He also stressed the urgent need for a rapid programme to expedite legal proceedings and rehabilitation processes concerning inmates imprisoned for narcotics-related offences, in order to ease prison overcrowding.

The Inspector General of Police also briefed the meeting on investigations and the current status relating to Buddhist monks who were recently arrested in connection with narcotics offences.

The President was further briefed on the progress of programmes jointly implemented by the Ministry of Education and the Women and Children’s Bureau to curb organised efforts to draw schoolchildren into narcotics use. He was also informed about community-based programmes planned in conjunction with the International Day Against Drug Abuse and Illicit Trafficking, which falls on 26 June.

Among those present at the meeting were the Anunayaka Theros of the Malwathu and Asgiri Chapters, senior clergy representing several Buddhist Nikayas, Christian priests, Hindu Kurukkals, Muslim religious leaders, senior government officials including Secretary to the President Dr Nandika Sanath Kumanayake, ministry secretaries, senior tri-forces commanders, Inspector General of Police Priyantha Weerasooriya, heads of relevant institutions, senior security officials, and representatives of the “Ratama Ekata” National Steering Council.

[PMD]

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