Sri Lanka Inflation Rate Picks Up to 14-Month High

The inflation rate in Colombo, Sri Lanka’s capital, edged up 5.5% in May 2026 from 5.4% in the previous month. This marked the highest reading since February 2024, as non-food prices rose by 7.8% from 6.8% in April, lifted by cost increases in transport, housing and utilities, restaurants and hotels, education, miscellaneous goods, health, and household equipment. Meanwhile, food inflation moderated sharply to 0.9% from 2.8%. On a monthly basis, consumer prices grew by 0.9% in May, easing from a 3% growth in the preceding period.

The annual inflation rate in Colombo, Sri Lanka’s capital, rose to 5.4% in April 2026, up from 2.2% in March. Both food and non-food prices accelerated, increasing by 2.8% from 0.7% and by 6.8% from 2.9%, respectively. The rise in non-food inflation was mainly driven by transport costs (1.7% vs 0.8%), amid disruptions linked to the ongoing Middle East conflict. Additional contributions came from cost housing and utilities, restaurants and hotels, education, miscellaneous goods and service, health and clothing and footwear. On a monthly basis, consumer prices increased by 3.0%, following a 0.3% advance in the previous month.

The annual inflation rate in Colombo, Sri Lanka’s capital, rose to 2.2% in March 2026, up from 1.6% in February. Both food and non-food prices accelerated, increasing by 0.7% from 0.2% and by 2.9% from 2.3%, respectively. The increase in non-food prices was driven primarily by housing and utilities, with household power tariffs rising 7.2% amid climbing energy costs. Sri Lanka, which imports all of its fuel, has also been affected by the ongoing Middle East crisis, with fuel prices increasing by 35%. Additional contributions came from restaurants and hotels, education, health, and transport. On a monthly basis, consumer prices increased by 0.3%, following a 0.9% decline in the previous month.