Sri Lanka’s Inflation Rises to 8% in August

Sri Lanka’s overall inflation rate, as measured by the Colombo Consumer Price Index (CCPI) on a year-on-year basis, increased to 8% in August 2026, up from 7.3% in July.

According to the Department of Census and Statistics (DCS), the increase was largely driven by a sharp rise in food prices.

Year-on-year inflation for the Food Group rose to 8.5% in August, compared to 6.3% in July.

Meanwhile, inflation in the Non-Food Group marginally declined to 7.7% in August from 7.8% in the previous month.

The CCPI for all items stood at 208.8 in August, recording an increase of 0.6 index points from 208.2 in July.

The DCS, which compiles the CCPI, said the index measures the average change in prices of goods and services purchased by households in urban areas of the Colombo District.

The current CCPI is based on 2021 as the base year and covers a consumer basket comprising 426 items. The weights assigned to the items are based on expenditure patterns recorded in the 2019 Household Income and Expenditure Survey (HIES).

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