FX.co ★ Sri Lanka Consumer Prices Fall the Least in 9 Months

Consumer prices in Colombo, the capital of Sri Lanka, fell by 0.6% year-on-year in May 2025, showing a slight improvement from a 0.7% decrease in the prior month. This marked the tenth straight month of deflation, though it was the smallest decline in nine months, as price reductions moderated for food and non-alcoholic beverages, which dropped to 4.3% from 5.2%. Additionally, the decline in prices slowed for housing and utilities, moving to -7.9% from -8.8%, and for transportation, which improved to -5.5% from -6.5%. Prices for furnishings and equipment remained stable at a -0.6% change. Conversely, the cost of clothing and footwear saw a quicker increase, accelerating to 3.9% from 3.7%, as did prices for restaurants and hotels, which rose to 1.4% from 0.4%. On a monthly basis, consumer prices increased by 0.9% in May, compared to a 0.8% rise in April.