Sri Lanka Inflation Rate Picks Up to 14-Month High

The inflation rate in Colombo, Sri Lanka’s capital, rose to 8.0% in August 2026 from 7.3% in the previous month, above market expectations of 7.7%. This marked the highest reading since June 2023, as food inflation climbed to an over three-year high of 8.5% from 6.3% in July. In contrast, non-food prices edged down to 7.7% from 7.8%, as costs eased in housing and utilities (5.1% vs 5.4%) and transport (16.7% vs 17.2%). Meanwhile, inflation increased for food and non-alcoholic beverages (8.5% vs 6.3%), clothing and footwear (1.4% vs 0.8%), furnishing and equipment (6.6% vs 5.4%), health (3.4% vs 3.0%), communication (0.9% vs 0.5%), restaurants and hotels (11.1% vs 10.6%), and miscellaneous goods and services (6.8% vs 6.2%). On a monthly basis, consumer prices ticked higher to 0.3% in August from 0.2% in the previous month.

The inflation rate in Colombo, Sri Lanka’s capital, rose to 7.3% in July 2026 from 6.8% in the previous month, well above market expectations of 6.7%. This marked the highest reading since June 2023, as food inflation accelerated to a more than three-year high of 6.3% from 3.6% in June, while non-food prices remained elevated but eased to 7.8% from 8.4%. Prices increased faster for furnishing and equipment (5.4% vs 4.5% in June), communication (0.5% vs 0.3%), education (7.2% vs 6.5%), restaurants and hotels (10.6% vs 10.3%), and miscellaneous goods and services (6.2% vs 5.8%). Meanwhile, inflation slowed for transport (17.2% vs 18.7%), clothing and footwear (0.8% vs 1.3%), housing and utilities (5.4% vs 6.3%), and health (3.0% vs 4.2%). Costs were flat for alcoholic beverages and tobacco after a 1.7% increase, while prices for recreation and culture declined further (-2.1% vs -1.4%). On a monthly basis, consumer prices moderated to 0.2% in July from 2.1% in the previous month.

The inflation rate in Colombo, Sri Lanka’s capital, rose to 6.8% in June 2026 from 5.5% in the previous month, above market expectations of 5.8%. This marked the highest reading since June 2023, as food inflation accelerated to a one-year high of 3.6% from 0.9% in May. Additionally, non-food prices rose 8.4% from 7.8%, lifted by cost increases in furnishing and equipment (4.5% vs 3.9%) and transport (18.7% vs 13.9%). Meanwhile, inflation eased for alcoholic beverages and tobacco (1.7% vs 3.0%), clothing and footwear (1.3% vs 1.7%), housing and utilities (6.3% vs 6.9%), and communication (0.3% vs 1.0%). On a monthly basis, consumer prices increased 2.1% in June, accelerating from a 0.9% rise in the previous month.