ECONOMYNEXT – Sri Lanka’s overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI), touched near the Central Bank’s upper inflation target rate of 5.4 percent in April 2026, data from the state statistics office showed.
The Central Bank had expected to reach its mid-term target of 5 percent much later than April and analysts say the sudden increase may pressure the Central Bank to tighten its monetary policy sooner rather than later.
The inflation increased from 2.2 percent in March.
The island nation’s economy witnessed upward price adjustments after the government raised fuel prices by around 35 percent following a supply shortage due to Middle East escalation, which also resulted in higher global oil prices.
The widely-watched Colombo Consumer Price Index rose 5.8 points in April to 201.6 points from 195.8 points the previous month.
Both food commodities and non-food items contributed to the April inflation. The data showed.
The CCPI recorded an increase of 2.99 percent in April compared to March 2026.
“This represents an increase in expenditure value of Rs. 5,380.92 in the market basket,” the state-owned statistics office said.
“The month-on-month change was contributed by an increase in Food items by 0.56% and an increase in Non Food items by 2.43%,” it said.
Under the food items, the highest contributor to the increase was Coconut Oil followed by Vegetables, while under the non food item was Transport followed by Housing, Water, Electricity, Gas and Other Fuels. (Colombo/Mar31/2026)