Sri Lanka, Oct. 1 -- The Central Bank of Sri Lanka (CBSL) yesterday kept its Overnight Policy Rate (OPR) unchanged at 8.75%, as it weighs rising inflationary pressures against resilient domestic economic activity and external sector improvements.

The Monetary Policy Board said the decision reflected the evolving domestic and global economic conditions, with particular attention to the impact of the proactive monetary policy tightening introduced in May 2026 and other measures that have largely taken effect.

The Board also highlighted heightened uncertainty from continuing geopolitical tensions in the Middle East and potential economic risks associated with El Nino conditions. Sri Lanka's economy expanded by 4.7% year-on-year in the firs...