Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) decreased to 25.2% in May 2023 from 35.3% in April 2023. The decline in the headline inflation is broadly in line with the disinflation path envisaged by the Central Bank of Sri Lanka (CBSL) in April 2023.

The Food inflation (Y-o-Y) decreased to 21.5% in May 2023 from 30.6% in April 2023, while the Non-Food inflation (Y-o-Y) decreased to 27.0% in May 2023 from 37.6% in April 2023. Monthly change of CCPI recorded at -0.02% in May 2023. This small monthly change was due to the netting off of price decreases observed in the items of Non-Food category, which was -0.56% by the price increases observed in the Food category, which was 0.53%. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, decreased to 20.3% in May 2023 from 27.8% in April 2023.

By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. The penalty may be prescribed taking into consideration the nature and gravity of relevant non-compliance of the Financial Institution.

Accordingly, as Sri Lanka’s regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), the FIU collected penalties as indicated below, amounting to Rs. 5.5 million in total from 17 November 2022 to 31 March 2023 to enforce compliance on Financial Institutions. The money collected as penalties were credited to the Consolidated Fund.