📈 CBSL Releases Second Monetary Policy Report for 2026

• Overview: The Central Bank of Sri Lanka (CBSL) published its biannual Monetary Policy Report for August 2026 under the CBSL Act No. 16 of 2023, providing economic outlooks on inflation, growth, and policy rationale. • Inflation & Policy Stance: Headline inflation accelerated sharply and is projected to stay elevated in the short term before stabilizing near the 5% target. CBSL tightened monetary policy in May 2026 to control price pressures and anchor expectations. • Credit & External Sector: Growth in private sector credit is expected to moderate in response to May's tightening measures. Meanwhile, the external sector maintains resilience despite global spillover risks from the Middle East conflict. • Growth Outlook & Risks: The national economic growth trajectory remains broadly stable, though geopolitical tensions and weather-related disruptions pose potential uncertainties.