ECONOMYNEXT – Sri Lanka’s overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI), rose to more than three-year high of 8.0 percent in August 2026 from 7.3 percent in the previous month, breaching the Central Bank’s upper inflation target rate of 7 percent for the second month, data from the state statistics office showed.

The CCPI for all items in August 2026 stood at 208.8, recording an increase of 0.6 index points or 0.28 percent compared to 208.2 in July 2026.

“This represents an increase in expenditure value of Rs.526.15 in the market basket,” the Department of Census and Statistics said in a statement.

The island nation’s economy witnessed upward price adjustments after the government raised fuel prices by nearly 50 percent following a supply shortage due to Middle East escalation, amid higher global oil prices.

Year-on-year food inflation accelerated to 8.5 percent in August 2026, its highest since May 2023 and rising from 6.3 percent in July 2026, contributing mainly to the increase in headline inflation.

Non-food inflation, year on year, rose to 7.7 percent in August 2026, easing from 7.8 percent in July 2026.

Core inflation, year on year, accelerated to 5.5 in August 2026 from 4.4% in the previous month.

The Central Bank kept its Overnight Policy Rate staedy in its last monetary policy meeting.

The Central Bank Governor has expected the inflation to ease to 5 percent towards the end of the year if the average global oil prices remain around US$80 per barrel. (Colombo/August 31/2026)

ECONOMYNEXT – Sri Lanka’s rupee closed at 328.10/30 to the US dollar in the spot market on Monday, stronger from 327.98/328.04 Friday, while bond yields closed lower on selected tenors while the rest of the yield curve consolidated, dealers said.

A bond maturing on 15.09.2027 closed at 9.45/55 percent.

A bond maturing on 15.02.2028 closed flat at 9.90/10.00 percent.

A bond maturing on 15.12.2029 closed flat at 10.25/30 percent.

A bond maturing on 01.08.2030 closed at 10.45/50 percent.

A bond maturing on 15.10.2030 closed at 10.52/65 percent, down from 10.50/55 percent.

A bond maturing on 15.12.2032 closed at 11.00/10 percent, down from 10.95/11.05 percent.

A bond maturing on 15.10.2032 closed at 11.40/50 percent.

A bond maturing on 15.03.2035 closed at 11.50/60 percent.

A bond maturing on 15.08.2036 closed at 11.75/80 percent, down from 11.77/80 percent.

A bond maturing on 01.07.2037 closed at 11.75/85 percent, down from 11.80/92 percent. (Colombo/Aug31/2026)

ECONOMYNEXT – Sri Lanka has launched the National Tourism Strategic Planning Consultancy (2026–2031) and the Global Promotional Campaign Roadmap Consultancy, supported by the World Bank’s Grant Facility for Project Preparation (GFPP) with a total grant allocation of 1 million dollars.

The formulation of the National Tourism Strategic Plan has been awarded to a joint partnership between Spain’s Aninver Development Partners and Sri Lanka’s EML Consultants PLC.

Local team leader Malraj Kiriella said that while foreign arrivals have rebounded, tourist spending remains depressed.

“In 2025, the country received approximately 2.36 million visitors, exceeding the level achieved in 2018. However, earnings were approximately US $3.2 billion, and average earnings per tourist remained significantly below the 2018 level,” Kiriella said.

Kiriella explained that the strategic roadmap will focus on increasing visitor spending, encouraging longer stays, and spreading economic benefits across all nine provinces by linking tourism directly with agriculture, tea, wellness, fisheries, and creative industries.

Running in parallel, the destination communication campaign roadmap is being formulated by Skift Inc of the United States and MTI Consulting of Sri Lanka to modernize global marketing through data-driven campaigns.

José de la Maza, Managing Director of Aninver Development Partners, emphasized the importance of creating distinctive travel products, supporting local small businesses, and minimizing economic leakages.

“As everybody is discussing: focus on yield, not on number of visitors. So value per visitor, it’s important. We need to—of course, we can grow in visitors year over year, but it doesn’t have to be the key priority,” Maza said.

The 24-week strategic consultancy will conduct stakeholder co-creation workshops in October and validation sessions in January before finalizing a costed, actionable national roadmap by February. (Colombo/Aug31/2026)

ECONOMYNEXT – Sri Lanka’s services exports in July 2026 rose by 20.07 percent to 351.92 million dollars, compared to the same period last year, the island’s Export Development Board said.

“Our priority now is to build on this momentum by strengthening the competitiveness of existing export sectors while accelerating the development of new products, services and markets,” the EDB chairman Mangala Wijesinghe said.

Exports earnings from ICT/BPM rose 2.32 percent to 143.24 million dollars in July 2026 compared with July 2025.

Earnings from construction rose to 13.09 million dollars in July 2026, up 30.88 percent year-on-year.

Transport and logistics grew 40.02 percent to 193.53 million dollars.

Financial services fell 57.25 percent to 2.10 million dollars.

Services exports reached an estimated 2,299.48 million dollars from January to July 2026, a year-on-year increase of 7.02 percent.

Total exports of goods and services for July 2026 was 1,637.26 billion US dollars, up 2.63 percent from July 2025. (Colombo/Aug31/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday trading, CSE data showed, with the benchmark All Share Price Index moving up 0.11 percent.

The ASPI was up 22.93 points at 21,338.84, while the more liquid S&P SL20 was up 0.22 percent, or 13.03 points, at 6,018.37.

Positive contributors to the ASPI were Browns Investments (up 8.16 percent at 5.30 rupees), Carson Cumberbatch (up 4.13 percent at 749.50 rupees), Windforce (up 4.63 percent at 40.70 rupees), John Keells Holdings (up 0.51 percent at 19.90 rupees), and DFCC Bank (up 0.99 percent at 128.00 rupees).

Vallibel One (down 2.64 percent at 88.50 rupees), Melstacorp (down 0.52 percent at 190.00 rupees), and Hatton National Bank (down 0.33 percent at 380.25 rupees) were top negative contributors.

Market turnover was 1.014 billion rupees. Capital goods led turnover with 300.64 million rupees.

Ceylon Land & Equity announced a proposed first and final scrip dividend of 0.043 rupees per ordinary share for the financial year ended March 31, 2026, subject to shareholder approval at its Annual General Meeting on September 23, 2026.

The dividend involves capitalizing 39.61 million rupees to issue 4,553,230 new ordinary shares at a consideration of 8.70 rupees per share, in the proportion of 1 new share for every 202.33 existing shares.

Shares of Ceylon Land & Equity closed down 1.16 percent at 8.50 rupees. (Colombo/August31/2026)

ECONOMYNEXT – Sri Lanka’s merchandise exports fell 1.3 percent to 1,285.31 million dollars in July 2026 from a year ago, driven by a drop on in apparel and tea exports, data from the export promotion office showed.

“40 percent of our apparel exports go to the US. 35 percent of our tea goes to the middle east. The war situation has seen a drop in demand,” EDB chairman Mangala Wijesinghe said.

“We expect this situation will be overcome in the next 3-4 months.”

Export earnings from apparel and textiles declined by 8.82 percent year-on-year to 437.59 million dollars in July 2026, the EDB said.

The decline was observed across major export destinations, with shipments to the United States, the United Kingdom, and the European Union decreasing by 6.28 percent, 5.73 percent, and 8.61 percent, respectively, compared to July 2025.

Tea export earnings declined by 17.22 percent year-on-year to 116.73 million dollars in July 2026.

“The decline was primarily attributable to weaker export performance in key markets, particularly the Middle East, where tea exports decreased by 47.93% compared to July 2025. Within the region, exports to the United Arab Emirates, Iran, Saudi Arabia, and Iraq recorded notable declines of 57.49%, 73.09%, 3.44%, and 78.54%, respectively, reflecting challenging market conditions affecting Sri Lanka’s tea exports.”

Coconut-based products recorded a 9.89 percent year-on-year decline in export earnings to 111.71 million dollars in July 2026.

Seafood exports recorded a significant 60.31 percent year-on-year decline, reaching 15.58 million dollars in July 2026.

Total merchandise export earnings for the period January to July 2026 amounted to 8,188.32 million dollars, reflecting an 5.05 percent increase compared to the same period in 2025.

Exports to the US saw a 0.58 percent decline to 250.87 million dollars in July 2026.

India continued to be the second-largest export destination, with exports increasing 9.12 percent to 129.5 million dollars in July 2026.

Exports to the UK declined 11.34 percent to 72.14 million dollars, despite Sri Lanka enjoying preferential access to the UK market under the UK’s Developing Countries Trading Scheme (DCTS), which grants duty‑free entry on about 92 percent of product lines. (Colombo/Aug31/2026)