The Monetary Policy Board of the Central Bank of Sri Lanka has decided to keep the Overnight Policy Rate (OPR) at 8.75%, leaving borrowing costs unchanged for now.

The Bank said domestic economic activity has remained resilient, with real GDP growing 4.7% year-on-year in the first half of 2026, and leading indicators pointing to continued momentum despite global and climate-related risks.

Headline inflation climbed to 8.0% in August as higher energy costs worked their way through the economy. The Central Bank expects inflation to stay in the high single digits through the first quarter of 2027 before easing back towards its 5% target.

Private sector credit growth is gradually moderating in response to earlier policy measures, but the Bank expects credit flows to remain sufficient to support economic activity. It said it stands ready to act if inflation pressures intensify.

The next monetary policy review is scheduled for 20 November 2026.