News
CB reduces interest rates
The Monetary Board of the Central Bank has decided to reduce the Standing Deposit Facility Rate and the Standing Lending Facility Rate by 200 basis points to 10.00 percent and 11.00 percent respectively, a statement from it said on Thursday.
The central bank said it took this decision at the monetary board meeting held on Wednesday.
The central bank said the monetary board arrived at this decision following a careful analysis of the current and expected developments, including low inflation and benign inflation expectations in the domestic economy, with the aim of stabilizing inflation at the envisaged five percent level in the medium term, thereby enabling the economy to reach its potential growth.
The monetary board expects that this reduction of policy interest rates, along with the significant easing of monetary policy effected previously, including the directions issued by the Central
Bank to licensed banks to reduce interest rates, and the significant reduction of risk premia on government securities, would accelerate the downward adjustment in market interest rates, particularly lending rates, in the period ahead.
The central bank said the financial sector is urged to pass on the benefits of the continued easing of monetary conditions to individuals and businesses adequately and swiftly, thereby supporting the envisaged rebound of the economy.
Colombo Consumer Price Index (CCPI) based headline inflation (year-on-year) decelerated significantly below the target to 1.3 per cent in September 2023 driven by declines in both food and non-food inflation, the central bank said.
Sri Lanka increased its interest rates significantly in 2022 to deal with rising inflation, however rates were reduced twice in 2023.
Food items recorded deflation (year-on-year) for the third consecutive month in September 2023, while non-food inflation continued to moderate due to the easing of price pressures across many categories of the CCPI basket. CCPI based core inflation (year-on-year), which reflects underlying demand pressures in the economy, also moderated further in September 2023, reinforcing the disinflation process.
However, this disinflation process is expected to turnaround from September 2023, with the dissipating impact of the favourable base, and converge towards the targeted level of inflation, the central bank said.
Nevertheless, if the planned upward adjustments to administratively determined prices and tariffs, including electricity, as well as any tax measures are implemented by the Government, a short-lived upward movement in headline inflation beyond the target is likely in the near term. Headline inflation is expected to stabilise at the target rate of 5 per cent over the medium term as reflected by the latest projections of the Central Bank.
The Secretary to the President, Dr. Nandika Sanath Kumanayake stated that the government has taken a policy decision to continue, without interruption, “School Nutrition Programme’’ aimed at reducing anemia among schoolchildren, which is being implemented with the assistance of the World Food Programme.
He made these remarks on Wednesday (23), during a discussion held at the Presidential Secretariat with representatives from relevant Ministries and government institutions involved in the programme, along with officials from the World Food Programme, the Bill and Melinda Gates Foundation and the Pathfinder Foundation.
The school meal programme, aligned with the government’s initiative to provide nutritious lunch to primary school students in districts identified as having high levels of malnutrition, specifically targets the reduction of iron deficiency among schoolchildren. The initiative is jointly coordinated by the Ministry of Education, Higher Education and Vocational Education, the Ministry of Health and Mass Media, Provincial Councils, the Food Promotion Board and the Partnership Secretariat for the World Food Programme Cooperation. The government has allocated Rs. 32 billion for this programme for the current year.
A pilot project is currently being implemented in four selected districts. Based on a formal health and nutrition study assessing the outcomes of this pilot project, there are plans to expand the programme island-wide. The study aims to determine the extent to which iron deficiency among schoolchildren can be reduced through this initiative.
As part of the programme, fortified rice enriched with iron and folic acid will be included in the school meals to specifically address anemia among students.
The World Food Programme, the Bill and Melinda Gates Foundation, the Gateway Foundation and the Pathfinder Foundation have pledged their continued support for this effort.
Present at the occasion were Secretary to the Prime Minister Pradeep Saputhanthri, Senior Additional Secretary to the President Kapila Janaka Bandara, Secretary to the Ministry of Education Nalaka Kaluwewa, Secretary to the Ministry of Health and Mass Media Dr. Anil Jasinghe, and Secretary to the Ministry of Rural Development, Social Security and Community Empowerment Malarmathy Gangatharan, along with other government officials and representatives from partner organizations.
[PMD]
Latest News
Heat index at ‘Caution level’ at some places in Northern, North-central and Eastern provinces and Monaragala, Hambantota districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 23 April 2025, valid for 24 April 2025
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Northern, North-central and Eastern provinces and Monaragala, Hambantota districts
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
Retired SSP Shani Abeysekera, serving the Police Department again, has been appointed to the committee headed by Senior DIG Asanka Karawita, tasked with studying the Presidential Commission of Inquiry (PCoI) report on the 2019 Easter Sunday carnage.
The other members of the team are DIG, CID, Director, CID and Director Terrorism Investigation Division (TID)
Pivithuru Hela Urumaya (PHU) leader Udaya Gammanpila yesterday said that Abeysekera had been one of the law enforcement officers whose conduct raised eyebrows over the years as regards the failure on the part of the CID to thwart the Easter Sunday attacks.
The National Police Commission approved the reappointment of SSP Abeysekera on contractual basis for one year, with effect from 10 Oct., 2024.
Abeysekera backed Anura Kumara Dissanayake’s presidential election campaign as a member of the retired police collective.
“School Nutrition Programme’’to continue, without interruption
Heat index at ‘Caution level’ at some places in Northern, North-central and Eastern provinces and Monaragala, Hambantota districts
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