Sri Lanka, Jan. 28 -- The Monetary Policy Board decided to keep the Overnight Policy Rate (OPR) at 7.75% during its meeting yesterday. This decision aims to guide inflation toward a 5% target while balancing domestic recovery efforts and global uncertainties.

Inflation, as measured by the Colombo Consumer Price Index (CCPI), held steady at 2.1% in December 2025. While food prices rose due to festive demand and supply chain issues caused by Cyclone Ditwah, projections suggest a gradual move toward the 5% target by the latter half of 2026. Core inflation also showed a slight uptick, a trend expected to continue as economic demand strengthens.

Sri Lanka's economy expanded by 5.0% during the first nine months of 2025 and demonstrates resili...