CBSL rate decision on 30 September

Saturday, 26 September 2026 00:00 - - {{hitsCtrl.values.hits}}

The Central Bank of Sri Lanka (CBSL) will announce the decision of its Monetary Policy Board under Monetary Policy Review No. 05 of 2026 at 7.30 a.m. on Wednesday (30).

At its previous review in July, the Board decided to maintain the Overnight Policy Rate (OPR) at the current level of 8.75%. The rate was raised in May, when the Board decided to increase the Overnight Policy Rate by 100 bps to 8.75%. At the time, the CBSL said high global oil prices had necessitated sharp upward adjustments to domestic energy prices, largely contributing to the 5.4% (yoy) inflation in April 2026, against its target of 5%.

In July, the Board noted that in spite of the near-term uptick in actual inflation, inflation expectations remain well-anchored around the inflation target over the medium term, and that demand conditions in the economy have also strengthened.

The Colombo Consumer Price Index-based headline inflation accelerated to a three-year high of 8% year-on-year (YoY) in August from 7.3% in July, exceeding CBSL’s 5% ±2% inflation target band for a second consecutive month and intensifying scrutiny over its ability to steer inflation back towards target and calls for the target to be reduced to 2%.

However, the IMF this week backed CBSL’s 5% ±2% target, advising against any revisions until Sri Lanka achieved a stable inflation regime.