Sri Lanka Producer Inflation Eases

Producer prices in Sri Lanka rose by 2.5% year-on-year in December 2025, accelerating from an upwardly revised 0.6% increase in the previous month. This marked the highest reading since September 2024, driven by a rebound in costs for agricultural products (5.8% vs -0.4% in November), particularly for perennial crops and animal production. Additionally, inflation increased further for manufacturing (2.3% vs 0.8%), supported by higher costs of chemical, tobacco, and food products. On the other hand, prices declined at a faster pace for electricity, gas, steam, and air conditioning supply (-6% vs -1%). On a monthly basis, producer prices climbed by 1.6% in December, following a 0.4% gain in the preceding period.

Producer prices in Sri Lanka rose 0.4% from the previous year in November of 2025, easing from the one-year high of 0.9% in the previous month. Inflation was muted for manufacturing (0.2%), amid a stall in producer prices of textiles and low price growth for food products (0.2%) and rubber (0.1%). In the meantime, producer prices fell for electricity and other utilities (-1.1%). On the other hand, inflation was higher for water collection and treatment (0.9%) and agriculture (1.8%). From the previous month, Sri Lankan producer prices rose by 0.4%.

Producer prices in Sri Lanka rose 0.9% year-on-year in October 2025, rebounding from a 0.5% decline in the previous two months. This marked the highest producer inflation since September 2024, as prices increased for manufacturing (1.2% vs 0.2% in September), particularly for food, tobacco, and wearing apparel. Additionally, deflation eased sharply for agricultural products (-0.7% vs -6.0%), mainly due to a notable recovery in prices of perennial crops. Costs also fell at a softer pace for electricity, gas, steam, and air conditioning supply (-0.2% vs -2.2%). On a monthly basis, producer prices rose 0.5% in October, reversing a downwardly revised 0.8% drop in September.