Sri Lanka Inflation Rate Hits Over 3-Year High
2026-07-31 10:19
By
Erika Ordonez
1 min. read
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.