Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) decelerated sharply to 0.5% in August 2024 from 2.4% in July 2024. This deceleration in the headline inflation is broadly in line with the projections of the Central Bank of Sri Lanka.

The external sector remained resilient with increased inflows from workers' remittances and tourist earnings despite an expansion in the trade deficit In July 2024.

Merchandise trade deficit widened in July 2024 (y-o-y), recording the highest monthly trade deficit thus far in 2024.