Central Bank of Sri Lanka - News Survey -
Jan-Mar 20191
New
s Su
rvey
Central Bank of Sri Lanka
ISSN 1391 3589
Volum
e 39 |
Num
ber 1 |
JAN-M
AR 2019
The views expressed in the articles are those of the writers and are not necessarily those of the Central Bank of Sri Lanka.
Price per copy: Rs. 60.00 / Annual subscription (Inclusive of postage): Rs. 420.00
Let the DATA talk
Let the DATA talk
2 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
Let the DATA talk1. The Rupee took a beating in 2018
With the value of the US Dollar in terms of the Sri Lanka rupee going up from around Rs. 153.50 at the beginning of 2018 to over Rs. 161 at the beginning of the third quarter of 2018 and thereafter moving up quite rapidly to over Rs.175 by November 2018 and
further to above Rs. 180 by January 2019, some of the Central Bank’s key operations again came to the focal point, since a country’s exchange rate policy is executed by the central bank.
-65-60-55-50-45-40-35-30-25-20-15-10
-50
3-Ja
n-00
17-O
ct-0
0
1-A
ug-0
1
16-M
ay-0
2
28-F
eb-0
3
13-D
ec-0
3
26-S
ep-0
4
11-J
ul-0
5
25-A
pr-0
6
7-Fe
b-07
22-N
ov-0
7
5-Se
p-08
20-J
un-0
9
4-A
pr-1
0
17-J
an-1
1
1-N
ov-1
1
15-A
ug-1
2
30-M
ay-1
3
14-M
ar-1
4
27-D
ec-1
4
11-O
ct-1
5
25-J
ul-1
6
9-M
ay-1
7
21-F
eb-1
8
6-D
ec-1
8
Per c
ent
Depreciation(-)/Appreciation(+) of theSri Lanka Rupee vis-à-vis the USD since 2000
Central Bank of Sri Lanka - News Survey -
Jan-Mar 20193
The Central Bank of Sri Lanka intervened in the domestic foreign exchange market in 2018 to prevent high volatility in the movement of the exchange rate of the Sri Lanka rupee, whilst allowing the exchange rate to move so as to reflect the underlying macroeconomic fundamentals. As a result, the official foreign reserves declined. However, the Central Bank continues to meet, on time, the repayment obligations in respect of foreign borrowings of the government.
The year 2018 saw a significant decline in the external value of several currencies including the Sri Lanka rupee alongside the tightening monetary conditions in international markets as a result of the normalisation of the monetary policy stance of the Federal Reserve Board of the USA. The figures below present a snapshot of the behaviour of some selected currencies including the Sri Lanka rupee, during the year 2018.
1.0 1.31.7
2.3 2.22.7 2.8
3.5
2.6
5.4
7.26.7
7.17.5
8.2
7.3
6.0
8.0
6.9
0
123456
789
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
US$
Bn.
Gross O�cial Reserves
other Selected Currencies vis-à-vis the USD in 2018 Appreciation/Depreciation of the Sri Lanka Rupee &
-20
-15
-10
-5
0
5
10
(%)
Sri Lanka Rupee
Euro
UnitedKingdomPound
Japan Yen
2-Ja
n-18
23
-Jan
-18
13-F
eb-1
8 6-
Mar
-18
27-M
ar-1
8 17
-Apr
-18
8-M
ay-1
8 29
-May
-18
19-J
un-1
8 10
-Jul
-18
31-J
ul-1
8 21
-Aug
-18
11-S
ep-1
8 2-
Oct
-18
23-O
ct-1
8 13
-Nov
-18
4-D
ec-1
8 25
-Dec
-18
Source of Data: Central Bank of Sri Lanka Annual Report for 2017, Special Statistical Appendix Table 5. Reserves, Total Foreign
Assets, External Debt and Exchange Rates; and Weekly Economic Indicators, Central Bank of Sri Lanka Website
4 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
Source of Data on Exchange Rates: International Monetary Fund (IMF) Website
-20
-15
-10
-5
0
5
10 (%)
Appreciation/Depreciation of the Sri Lanka Rupee & other Selected Currencies vis-à-vis the USD in 2018
Sri Lanka Rupee
Malaysia Ringgit
Thailand Baht
Singapore Dollar
China Yuan
2-Ja
n-18
22
-Jan
-18
11-F
eb-1
8 3-
Mar
-18
23-M
ar-1
8 12
-Apr
-18
2-M
ay-1
8 22
-May
-18
11-J
un-1
8 1-
Jul-1
8 21
-Jul
-18
10-A
ug-1
8 30
-Aug
-18
19-S
ep-1
8 9-
Oct
-18
29-O
ct-1
8 18
-Nov
-18
8-D
ec-1
8 28
-Dec
-18
Appreciation/Depreciation of the Sri Lanka Rupee & other Selected Currencies vis-à-vis the USD in 2018
(%)
Sri Lanka Rupee
Indonesia Rupiah
Russia Rouble
India Rupee
Pakistan Rupee5
0
-10
-5
-15
-20
-25
2-Ja
n-18
23
-Jan
-18
13-F
eb-1
8 6-
Mar
-18
27-M
ar-1
8 17
-Apr
-18
8-M
ay-1
8 29
-May
-18
19-J
un-1
8 10
-Jul
-18
31-J
ul-1
8 21
-Aug
-18
11-S
ep-1
8 2-
Oct
-18
23-O
ct-1
8 13
-Nov
-18
4-D
ec-1
8 25
-Dec
-18
Central Bank of Sri Lanka - News Survey -
Jan-Mar 20195
2. But FDIs increased further in 2018, from the highest level recorded in 2017
Some other recent developments on the external front meanwhile, augur well for the Sri Lankan economy. For example, foreign direct investment (FDI) inflows saw
Source of Data: Central Bank of Sri Lanka Annual Report for 2017, Special Statistical Appendix, Table 4. Balance of Payments; and Central Bank of Sri Lanka Website
significant increases in 2017 and 2018. Macroeconomic conditions prevailing no doubt played a role in attracting these FDI inflows.
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2014 2015 2016 2017 Jan-Sep 2018
USD Mn
Foreign Direct Investment (FDI) In�ows to Sri Lanka (in net terms)
6 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
3. Exports have also increased further in 2018
Whilst the exchange rate pertaining to the Sri Lanka rupee has been allowed by the Central Bank to be determined by market forces, this in turn ensures that pricing of Sri Lanka’s exports remains comptetitive. Export earnings, in fact, have recorded an increase, with several sub-categories of exports recording an increasing trend in earnings in recent years
Tea continues to be the key source of export earnings amongst agricultural products. However, earnings from
exports of several other agricultural products have gradually increased over the years.
0
20
40
60
80
100
120
140
160
Jan-
07Au
g-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0Fe
b-11
Sep-
11Ap
r-12
Nov
-12
Jun-
13Ja
n-14
Aug-
14M
ar-1
5O
ct-1
5M
ay-1
6D
ec-1
6Ju
l-17
Feb-
18Se
p-18
USD MnTea Exports
0
10
20
30
40
50
60
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn Exports of Spices
7.6 8.1 7.1
8.6
10.6 9.8
10.4 11.1
10.5 10.3 11.4 11.9
0
2
4
6
8
10
12
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
USD Bn.
Total Exports
0
50
100
150
200
250
300
Jan-
07
Aug
-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0
Feb-
11
Sep-
11
Apr
-12
Nov
-12
Jun-
13
Jan-
14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7
Feb-
18
Sep-
18
USD MnAgriculutural Exports
Central Bank of Sri Lanka - News Survey -
Jan-Mar 20197
0
1
2
3
4
5
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD MnExports of Vegetables
0
5
10
15
20
25
30
35
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD MnExports of Sea Food
0
5
10
15
20
25
30
35
40
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD MnExports of Coconut Products
While industrial exports have increased gradually over the years, exports of textiles and garments continue to be the source of highest export earnings amongst merchandise exports. However, exports of several other industrial products have continued to increase during the past several years.
0
100
200
300
400
500
600
700
800
900
1,000
Jan-
07
Aug
-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0
Feb-
11
Sep-
11
Apr
-12
Nov
-12
Jun-
13
Jan-
14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7
Feb-
18
Sep-
18
USD Mn Exports of Industrial Products
8 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
Exports of Leather, travel goods and footwear
02468
101214161820
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn
050
100150200250300350400450500
Jan-
07
Nov
-07
Sep-
08
Jul-0
9
May
-10
Mar
-11
Jan-
12
Nov
-12
Sep-
13
Jul-1
4
May
-15
Mar
-16
Jan-
17
Nov
-17
Sep-
18
USD Mn Exports of Textiles & Garments
0
10
20
30
40
50
60
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn Exports of Food & Beverages
02468
101214161820
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD MnExports of Base Metals & Metal Articles
0
1
2
3
4
5
6
7
8
9
10
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD MnExports of Plastic & Plastic Articles
0
20
40
60
80
100USD Mn
Jan-
07Au
g-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0Fe
b-11
Sep-
11Ap
r-12
Nov
-12
Jun-
13Ja
n-14
Aug-
14M
ar-1
5O
ct-1
5M
ay-1
6D
ec-1
6Ju
l-17
Feb-
18Se
p-18
Exports of Rubber Products
Central Bank of Sri Lanka - News Survey -
Jan-Mar 20199
Source of Data on Exports: Central Bank of Sri Lanka Website
4. Our policies have helped manage Imports for the better
In the case of imports, available data suggest that the policy measures taken by the Central Bank recently are likely to have the intended impact without distabilising
imports of necessary items such as intermediate goods, investment goods as well as certain items classified as consumer goods, as can be seen from the following figures. One such policy measure taken was the imposition of regulatory restrictions on the importation of motor vehicles, which are generally used for non-commercial purposes, to be effective from late September 2018 till early March 2019.
0
10
20
30
40
50
60
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn
Exports of Machinery & Mechanical Appliances
0
2
4
6
8
10
12
14
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD MnExports of Wood & Paper Products
0
50
100
150
200
250
300
350
400
Jan-
07
Aug
-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0
Feb-
11
Sep-
11
Apr
-12
Nov
-12
Jun-
13
Jan-
14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7
Feb-
18
Sep-
18
USD Mn.
Expenditure on Imports of Consumer Goods excluding Vehicles
10 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
0
20
40
60
80
100
120
140
160
180Ja
n-07
Aug
-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0Fe
b-11
Sep-
11A
pr-1
2N
ov-1
2Ju
n-13
Jan-
14A
ug-1
4M
ar-1
5O
ct-1
5M
ay-1
6D
ec-1
6Ju
l-17
Feb-
18Se
p-18
USD Mn.Expenditure on Imports of Vehicles Expenditure on Imports of Medical & Pharmaceutical Items
05
1015
202530
354045
5055
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn.
050
100150200250300350400450500550600650700750800
Jan-07
Aug-07
Mar-08
Oct-08
May-09
Dec-09
Jul-10
Feb-11
Sep-11
Apr-12
Nov-12
Jun-13
Jan-14
Aug-14
Mar-15
Oct-15
May-16
Dec-16
Jul-17
Feb-18
Sep-18
USD Mn.Expenditure on Imports of Intermediate Goods excluding Fuel
050
100150200250300350400450500550600
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn. Expenditure on Imports of Fuel
Central Bank of Sri Lanka - News Survey -
Jan-Mar 201911
Source of Data on Imports: Central Bank of Sri Lanka Website
050
100150200250300350400450500550
Jan-
07
Aug
-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0
Feb-
11
Sep-
11
Apr
-12
Nov
-12
Jun-
13
Jan-
14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7
Feb-
18
Sep-
18
USD Mn.Expenditure on Imports of Investment Goods
0
20
40
60
80
100
120
140
160
Jan-
07A
ug-0
7M
ar-0
8O
ct-0
8M
ay-0
9D
ec-0
9Ju
l-10
Feb-
11Se
p-11
Apr
-12
Nov
-12
Jun-
13Ja
n-14
Aug
-14
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-1
7Fe
b-18
Sep-
18
USD Mn.
Expenditure on Imports of Building Material
0
20
40
60
80
100
120
140
160
Jan-
07Se
p-07
May
-08
Jan-
09Se
p-09
May
-10
Jan-
11Se
p-11
May
-12
Jan-
13Se
p-13
May
-14
Jan-
15Se
p-15
May
-16
Jan-
17Se
p-17
May
-18
USD Mn.
Expenditure on Imports of Transport Equipment
0
50
100
150
200
250
300
350Ja
n-07
Aug
-07
Mar
-08
Oct
-08
May
-09
Dec
-09
Jul-1
0Fe
b-11
Sep-
11A
pr-1
2N
ov-1
2Ju
n-13
Jan-
14A
ug-1
4M
ar-1
5O
ct-1
5M
ay-1
6D
ec-1
6Ju
l-17
Feb-
18Se
p-18
USD Mn.Expenditure on Imports of Machinery & Equipment
12 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
5. Credit remains buoyant and supportive of economic activity
With respect to macroeconomic outcomes of the monetary policy measures taken by the Central Bank, movements in credit flows and non-performing loans of the banking sector indicate that economic activity
Source of Data: Commercial Banks’ Loans and Advances to the Private Sector, Monthly Bulletin, various Issues, Central Bank of Sri Lanka Website.
Source of Data: Central Bank of Sri Lanka Website
in both agriculture and industry sectors remain bouyant. This in turn has supported the buoyancy of credit granted by banks by way of personal loans and advances.
0123456789
10
-10-505
10152025303540
Mar
-08
Dec
-08
Sep-
09
Jun-
10
Mar
-11
Dec
-11
Sep-
12
Jun-
13
Mar
-14
Dec
-14
Sep-
15
Jun-
16
Mar
-17
Dec
-17
Sep-
18
Per C
ent
Year
-on-
year
Cha
nge
(%)
Private Sector Credit Growth & NPLs
Credit granted to the Private Sector by Commercial Banks (LHS)
Non-performing Loans as a Per Cent of Total Loans and Advances of the Banking Sector (RHS)
-20
-15
-10
-5
0
5
10
15
20
25
30
35
40
45
50
Jun-
11
Sep-
11
Dec
-11
Mar
-12
Jun-
12
Sep-
12
Dec
-12
Mar
-13
Jun-
13
Sep-
13
Dec
-13
Mar
-14
Jun-
14
Sep-
14
Dec
-14
Mar
-15
Jun-
15
Sep-
15
Dec
-15
Mar
-16
Jun-
16
Sep-
16
Dec
-16
Mar
-17
Jun-
17
Sep-
17
Dec
-17
Mar
-18
Jun-
18
Sep-
18
Year
-on-
year
Cha
nge
(%)
Loans and Advances granted to the Private Sector by Commercial Banks
Agriculture and Fishing
Industry
Services
Personal Loans and Advances
Total
Central Bank of Sri Lanka - News Survey -
Jan-Mar 201913
The trends in economic activity as reflected by the trends in credit flows and non-performing loans meanwhile are corroborated by the trends in electricity
Electricity Sales (GWh)Year- on-year Change (%)
-8
-6
-4
-2
0
2
4
6
8
10
12
14
1620
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Jan-
Oct
201
8
Total Sales Sales to Industry Sec tor
sales (a commonly used proxy to gauge movements in economic activity, i.e. the GDP), as shown by the figure below.
Source of Data: Annual Reports and Monthly Economic Indicators, various Issues, Central Bank of Sri Lanka Website.
Meanwhile, a comparison of credit obtained by the private sector as at September 2018 (date of latest available data) with the position five years before, i.e., September 2013, indicates that the relative share of credit granted to the industry sector has recorded
a notable increase while the share of credit granted to the services sector has also increased. Within the industry sector, the relative share of construction has increased during this period.
Agriculture and Fishing
8%
Industry42%
Services28%
Personal Loans and Advances
22%
Loans and Advances granted to the Private Sector by Commercial Banks - as
at Sep. 2018
Agriculture and Fishing
13%
Industry35%
Services24%
Personal Loans and Advances
28%
Loans and Advances granted to the Private Sector by Commercial Banks - as
at Sep. 2013
14 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
Consumer Durables
18%
Pawning14%
Credit Cards9%
Other59%
Personal Loans and Advances granted by Commercial Banks - as at Sep. 2018
Consumer Durables
11%
Pawning46%
Credit Cards7%
Other36%
Personal Loans and Advances granted by Commercial Banks - as at Sep. 2013
Wholesale and Retail Trade
30%
Tourism12%
Financial and Business Services
25%
Transport5%
Communication & Information Technology
3%
Printing and Publishing
2%
Education 1%
Health 3%
Shipping, Aviation and Supply, and Freight Forwarding
1%
Other18%
Loans and Advances granted to the Services Sector by Commercial Banks - as at Sep. 2018
Wholesale and Retail Trade
35%
Tourism11%
Financial and Business Services
21%
Transport3%
Communication & Information Technology
5%
Printing and Publishing
2%
Education 1%
Health 2%
Shipping, Aviation and Supply, and Freight Forwarding
2%Other18%
Loans and Advances granted to the Services Sector by Commercial Banks - as at Sep. 2013
Tea21%
Rubber8%
Coconut5%
Paddy8%Vegetable and Fruit
Cultivation and Minor Food Crops
7%
Livestock and Dairy Farming
5%
Fisheries4%
Other42%
Loans and Advances granted to the Agriculture Sector by Commercial Banks - as at Sep. 2018
Tea16%
Rubber7%
Coconut2%
Paddy5%
Vegetable and Fruit Cultivation and Minor Food
Crops4%
Livestock and Dairy Farming
3%Fisheries
3%
Other60%
Loans and Advances granted to the Agriculture Sector by Commercial Banks - as at Sep. 2013
Central Bank of Sri Lanka - News Survey -
Jan-Mar 201915
Construction48%
Food and Beverages5%
Textiles and Apparel8%
Wood and Wood Products including
Furniture1%
Paper and Paper Products1%
Chemical, Petroleum, Pharmaceutical and
Healthcare, and Rubber and Plastic Products
5%
Non-metallic Mineral Products
1%
Basic Metal Products
2%
Fabricated Metal Products, Machinery
and Transport Equipment
9%
Manufactured Products not speci�ed elsewhere
1%Other19%
Loans and Advances granted to the Industry Sector by Commercial Banks - as at Sep. 2018
Construction43%
Food and Beverages7%
Textiles and Apparel12%
Wood and Wood Products including
Furniture1%
Paper and Paper Products1%
Chemical, Petroleum,
Pharmaceutical and Healthcare, and
Rubber and Plastic Products
4%
Non-metallic Mineral Products
1%
Basic Metal Products
1%
Fabricated Metal Products, Machinery and Transport
Equipment9%
Manufactured Products not speci�ed elsewhere
1%
Other20%
Loans and Advances granted to the Industry Sector by Commercial Banks - as at Sep. 2013
6. But, challenging global economic conditions need watching
With respect to market interest rates, which the Central Bank manoeuvres to achieve its objective of price stability, conditions in domestic markets as well as international markets resulted in increases in market interest rates during several periods in the past. These situations however, were managed by the Central
Bank so as to ensure that monetary conditions became conducive for economic activity. Consequently, the Average Weighted Lending Rate (AWLR), which reflects the movement of interest rates pertaining to the entire lending portfolio of commercial banks, has remained at levels below 15 per cent in the past several years.
Source of Data: Central Bank of Sri Lanka
456789101112131415161718192021222324
Jan-
00Ju
n-00
Nov
-00
Apr-0
1Se
p-01
Feb-
02Ju
l-02
Dec
-02
May
-03
Oct
-03
Mar
-04
Aug-
04Ja
n-05
Jun-
05N
ov-0
5Ap
r-06
Sep-
06Fe
b-07
Jul-0
7D
ec-0
7M
ay-0
8O
ct-0
8M
ar-0
9Au
g-09
Jan-
10Ju
n-10
Nov
-10
Apr-1
1Se
p-11
Feb-
12Ju
l-12
Dec
-12
May
-13
Oct
-13
Mar
-14
Aug-
14Ja
n-15
Jun-
15N
ov-1
5Ap
r-16
Sep-
16Fe
b-17
Jul-1
7D
ec-1
7M
ay-1
8O
ct-1
8
Per c
ent
Domestic Interest Rates
364-day Treasury bill yield rateAWDRAWLR
Penal RateRepo Rate/SDFRRev. Repo Rate/SLFR
Source of Data: Commercial Banks' Loans and Advances to the Private Sector, Monthly Bulletin, various Issues, Central Bank of Sri Lanka Website.
16 Central Bank of Sri Lanka - News Survey -
Jan-Mar 2019
However, the gradual tightening of monetary conditions globally alongside the strengthening of advanced economies and the steps they took to normalise their monetary policy stance resulted in considerable pressure on the monetary conditions of emerging market economies and developing nations, during 2018. More recently, however, the slowing down of global economic activity and the ongoing geopolitical issues the world faces, have taken centre stage. These dynamics would continue to pose challenges, requiring the Central Bank of Sri Lanka to carefully calibrate its policy setting on a continuous basis.
0
1
2
3
4
5
6
7
8
9
10
Jan
-07
Dec
-07
Nov
-08
Oct
-09
Sep
-10
Au
g-11
Jul-
12
Jun
-13
May
-14
Ap
r-15
Mar
-16
Feb
-17
Jan
-18
Dec
-18
Per c
ent
Selected East & Southeast Asian Countries - Policy Interest Rates
Korea - Base rate Thailand - Repurchase Rate
Malaysia - Overnight Policy Rate Indonesia - BI rate
0
2
4
6
8
10
12
14
16
Jan-
07
Dec
-07
Nov
-08
Oct
-09
Sep-
10
Aug-
11
Jul-1
2
Jun-
13
May
-14
Apr-
15
Mar
-16
Feb-
17
Jan-
18
Dec
-18
Per c
ent
Selected South Asian Countries - Policy Interest Rates
Pakistan - SBP Policy Rate
India - Repo Rate
Sri Lanka - Standing Lending Facility Rate
Sources of Data: Websites of central banks
Published by the Central Bank of Sri Lanka, Janadhipathi Mawatha, Colombo 1, Sri LankaPrinted at the Central Bank Printing Press, 58, Sri Jayewardenepura Mawatha, Rajagiriya, Kotte, Sri Lanka
-1
0
1
2
3
4
5
6
Jan-
07
Dec
-07
Nov
-08
Oct
-09
Sep-
10
Aug-
11
Jul-1
2
Jun-
13
May
-14
Apr-
15
Mar
-16
Feb-
17
Jan-
18
Dec
-18
Per c
ent
Selected Advanced Economies - Policy Interest Rates
Japan - Target for uncollaterized overnight call rate
Euro Area - Main re�nancing operations minimum
UK - Bank Rate
USA - Federal funds target rate
bid rate