FX.co ★ Sri Lanka Inflation Rate Rises to 3-Year High

Consumer inflation in Colombo, Sri Lanka’s capital, accelerated to 6.8% in June 2026, up from 5.5% in May and above market expectations of 5.8%. This was the highest rate since June 2023, driven largely by a sharp pickup in food inflation, which climbed to a one-year high of 3.6% from 0.9% in the previous month.

Non-food inflation also quickened, with prices rising 8.4% year-on-year compared with 7.8% in May. The increase was mainly supported by higher costs for furnishing and household equipment (4.5% vs. 3.9%) and transport (18.7% vs. 13.9%).

These gains were partly offset by slower price growth in several categories. 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 rose 2.1% in June, accelerating from a 0.9% increase in May.