News
Central Bank expects inflation to “gradually stabilize”
Sri Lanka’s inflation is anticipated to gradually stabilise around the targeted level of five per cent over the medium term, following a short-lived acceleration of inflation in the near term on account of the recent tax adjustments and supply-side disruptions, the Central Bank of Sri Lanka (CBSL) said in its monetary policy report for February.
In the report, the CBSL said that headline inflation is expected to peak in the third quarter of 2024, mainly on account of the unfavourable base effect stemming from sharp disinflation recorded in the third quarter of 2023.
However, the near-term surge in headline inflation is unlikely to persist due to subdued demand conditions, as the economy is projected to operate below its full capacity for an extended period, the Bank said.
The CBSL observed that the rebound of domestic economic activity witnessed in the third quarter of 2023 is expected to continue, assisting the economy to gradually reach its potential over the medium term with the help of appropriate policies.
It predicted that the gradual relaxation of monetary policy will impact the broader market interest rates, and the resultant normalisation of nominal interest rates, are anticipated to stimulate growth towards its potential level by fostering investments, enhancing consumer spending, and ultimately boosting aggregate demand, thereby alleviating the ongoing contractionary impact on output.
The Central Bank said that they expect a negative trade-weighted foreign output gap to last for around two years, thereby impacting the domestic economy through exports. Improving productivity and addressing growth impediments by minimising structural limitations, such as the weak doing-business environment, remain pivotal to achieving a sustainable growth path and elevating the economy’s potential, it added.
Latest News
Landslide Early Warnings issued to the districts of Kandy and Nuwara Eliya extended
The landslide early warnings issued to the Districts of Kandy and Nuwara Eliya by the Landslide Early Warning Center of the National Building Research Organisation have been extended till 0600 hrs on 15th February 2026.
Accordingly,
The Level II [AMBER] warnings issued to the Divisional Secretaries Divisions and surrounding areas of Walapane and Nildandahinna in the Nuwar Eliya district and the
Level I [YELLOW] warning issued to the Divisional Secretaries Divisions and surrounding areas of Pathadumbara in the Kandy district have been extended.
Latest News
Advisory for Severe Lightning issued to the Western, Sabaragamuwa and Southern provinces and Badulla and Nuwara-Eliya districts
Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre at 11.30 a.m. 14 February 2026 valid for the period until 11.30 p.m. 14 February 2026
Thundershowers accompanied with severe lightning are likely to occur at some places in the Western, Sabaragamuwa and Southern provinces and in Badulla and Nuwara-Eliya districts after 1.00 p.m. There may be temporary localized strong winds during thundershowers.
The General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.
ACTION REQUIRED:
The Department of Meteorology advises that people should:
Seek shelter, preferably indoors and never under trees.
Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
Avoid using wired telephones and connected electric appliances during thunderstorms.
Avoid using open vehicles, such as bicycles, tractors and boats etc.
Beware of fallen trees and power lines.
For emergency assistance contact the local disaster management authorities.
Latest News
Teacher recruitment examinations will be conducted in accordance with the relevant court decisions – PM
Prime Minister Dr. Harini Amarasuriya stated that the forthcoming two teacher recruitment examinations will be conducted in accordance with the relevant court decisions pertaining to the ongoing legal proceedings and further noted that, taking into consideration the requests received, steps have been taken to make a request to Court’s approval to revise the conditions of the effective date of degree completion.
The Prime Minister made these remarks while addressing a meeting held at Monaragala Royal College to brief education authorities of the Monaragala District on the new education reforms.
Under the new education reforms, Smart Boards will be provided to 132 schools in the Monaragala District as part of the program to equip secondary schools with modern technology. As a symbolic step under this initiative, Smart Boards were presented to 10 secondary schools under the Prime Minister’s patronage. This program is being implemented with the intervention of the Digital Task Force operating under the Prime Minister’s Office. It was also emphasized that a new digital policy, formulated with special attention to child protection, will be introduced in April.
As part of her visit to the Monaragala District on the 13 th of February, the Prime Minister observed the implementation of the new learning methodologies introduced for Grade One under the new education reforms. She visited Kumbukkana Sri Shanmugam Tamil Maha Vidyalaya and Maduruketiya Maha Vidyalaya in Monaragala to observe the educational activities of Grade One students.
Considering the increase of student numbers and the development of infrastructure facilities, the Prime Minister also approved a proposal submitted by the School Development Society to rename Maduruketiya Maha Vidyalaya as Monaragala Dharmaraja Maha Vidyalaya.
Teachers briefed the Prime Minister that the new education system, supported by revised workbooks and activity-based learning methods, has proven to be effective, with students participating enthusiastically.
Addressing education officials further at the meeting held at Monaragala Royal College, the Prime Minister stated:
“Although this will not provide a complete solution to the existing teacher vacancies, these examinations can offer considerable relief. According to the Court’s previous determination, the effective date of degree completion had been set as 30.06.2025. However, considering numerous requests and following the cabinet approval we have sought Court’s consent to revise this date. We will act in accordance with the decision granted.
Funds allocated for school infrastructure must be utilized transparently and in line with proper planning, and progress must be reported accordingly. We cannot move forward by dividing ourselves along national, provincial, rural, or urban lines. As education authorities, you must make swift and accurate decisions based on correct data.
Further, discussions are already underway within the Piriven Committee of the Ministry of Education to develop Piriven education and to address the issues faced by Piriven teachers.”
The event was attended by the members of the Maha Sangha, Uva Province Governor Attorney-at-Law Kapila Jayasekara, Deputy Minister of Trade and Commerce R.M. Jayawardhana, Member of Parliament Ajith Agalakada, Uva Provincial Education Secretary Nihal Gunarathne, and several officials from the education sector.



[Prime Minister’s Media Division]
-
Features7 days agoMy experience in turning around the Merchant Bank of Sri Lanka (MBSL) – Episode 3
-
Business7 days agoRemotely conducted Business Forum in Paris attracts reputed French companies
-
Business7 days agoFour runs, a thousand dreams: How a small-town school bowled its way into the record books
-
Business7 days agoComBank and Hayleys Mobility redefine sustainable mobility with flexible leasing solutions
-
Business4 days agoAutodoc 360 relocates to reinforce commitment to premium auto care
-
Midweek Review4 days agoA question of national pride
-
Opinion3 days agoWill computers ever be intelligent?
-
Midweek Review4 days agoTheatre and Anthropocentrism in the age of Climate Emergency
