🚨 CBSL Holds Policy Rate: Focus on 5% Inflation Target by H2-2026

• The Central Bank of Sri Lanka (CBSL) maintained the Overnight Policy Rate (OPR) unchanged at 7.75% following its latest Monetary Policy Board meeting. • Objective: The Board believes the current monetary policy stance supports steering headline inflation towards the 5% target. • Inflation Dynamics: Headline inflation (CCPI) accelerated for the third consecutive month in October. It is now expected to reach the 5% target by H2-2026, a more gradual timeline than previously projected. Core inflation is also expected to accelerate modestly as demand strengthens. • Economic Activity: Leading indicators suggest a continuation of the growth momentum. • Private Sector Credit: Credit has recorded a notable and broad-based expansion thus far in 2025, supported by the low-interest-rate environment. • Policy Stance: CBSL will continue monitoring and remains prepared to implement appropriate measures to ensure inflation stabilizes around the target while supporting the economy's potential.