Sri Lanka, Oct. 2 -- Sri Lanka locks in a 5% inflation target for the next three years following a newly signed Monetary Policy Framework Agreement.

President and Minister of Finance, Planning and Economic Development Hon. Anura Kumara Dissanayake, alongside Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, inked the agreement on October 1, 2026. The framework was officially published under Government Gazette Extraordinary No. 2508/28 in accordance with Section 26 of the Central Bank of Sri Lanka Act, No. 16 of 2023.

Under the updated terms, the Central Bank is mandated to maintain headline inflation at a stable 5% quarterly target, accompanied by an accountability margin of plus or minus two percentage points. Quarterly h...