Sri Lanka Producer Inflation Eases in February

Producer prices in Sri Lanka increased at a slower pace of 1.1% year-on-year in February 2026, easing from 3% in the previous month. Agricultural prices contracted sharply (-16.2% vs. -1.1% in January), dragged down by declines in both non-perennial (-23.1%) and perennial crop production (-16.6%). Meanwhile, manufacturing inflation held steady at 3.7%, even as price drops recorded in textiles (-8.1%), printing and recorded media (-0.3%), coke and refined petroleum products (-1.9%), and furniture (-0.1%), while electricity, gas, steam, and air conditioning supply costs accelerated (15.5% vs. 3.2%). On a monthly basis, producer prices fell 0.7% in February, reversing a 0.3% increase in the preceding period.

Producer prices in Sri Lanka increased 3% year-on-year in January 2026, the most since June 2024, following a 2.5% rise in December. Manufacturing prices rose the most (3.7% vs 2.3% in December), with manufacturing of wearing apparel (9.1%), chemicals (8.2%), tobacco products (7.8%), rubber and plastics (7.8%) and transport equipment (7%) recording the biggest gains. Prices for utilities rebounded and were up 3.2%, after a 6% fall in December. On the other hand, cost for agriculture was down 1.1%, led by falls in animal production (-3.6%) and growing of perennial crops (-3%), and after a 5.8% jump in December. Compared to the previous month, the PPI edged up 0.3%.

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.