Sri Lanka’s Inflation Rate Rises Slightly, Remains in Negative Territory

COLOMBO, March 28 — Sri Lanka’s inflation rate showed a modest uptick in March, though it remains in negative territory, according to new data released by the Department of Census and Statistics.

The year-on-year inflation, measured by the Colombo Consumer Price Index (CCPI), rose to -2.6 percent in March from -4.2 percent in February. While still negative, the figure indicates a gradual easing of deflationary pressure in the economy.

Food prices edged up by 0.6 percent year-on-year, while non-food items continued to decline, registering a -4.1 percent drop.

Sri Lanka’s inflation had previously spiked to a staggering 69.8 percent in September 2022, amid a severe economic crisis that crippled the island nation. Since then, inflation has steadily declined, supported by stabilizing economic measures.

The Central Bank of Sri Lanka, in a statement earlier this week, attributed the ongoing deflation primarily to consecutive cuts in electricity tariffs and fuel prices. However, the bank projected that these deflationary conditions would ease starting this month, with inflation expected to return to positive territory by mid-2025.

— Agency