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The Monetary Policy Board, at its meeting held yesterday, decided to maintain the Overnight Policy
Rate (OPR) at the current level of 7.75%. The Board arrived at this decision after carefully considering
evolving developments and the outlook on both domestic and global fronts. The Board is of the view
that the current monetary policy stance will support steering inflation towards the target of 5%.
Headline inflation based on the Colombo Consumer Price Index (CCPI) continued to accelerate in
October for the third consecutive month. Inflation is expected to rise more gradually than projected
earlier and move towards the target by H2-2026. Core inflation is also expected to accelerate at a modest

pace, as demand in the economy gradually strengthens. Medium-term inflation expectations remain
well anchored around the inflation target.
Leading economic indicators suggest a continuation of the growth momentum. Credit to the private
sector has recorded a notable and broad-based expansion thus far in 2025,supported by the low-interestrate environment. This also reflects a recovery in economic activity as well as the realisation of pentup demand for vehicle imports. This credit momentum is likely to continue in the period ahead.