Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) increased to 1.5% in October 2023 from 1.3% in September 2023. This slight increase in the headline inflation is mostly in line with the projections envisaged by the Central Bank of Sri Lanka (CBSL) in October 2023.

The Food deflation (Y-o-Y) continued for the fourth consecutive month and remained unchanged at 5.2% in October 2023 compared to the previous month. Meanwhile, the Non-Food inflation (Y-o-Y) increased to 4.9% in October 2023 from 4.7% in September 2023. Monthly change of CCPI recorded at -0.22% in October 2023 due to the combined effect of price decreases of -0.63% observed in the items of Food category and price increases of 0.41% recorded in the items of Non-Food category. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, decreased to 1.2% in October 2023 from 1.9% in September 2023.

Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, attended, by invitation, the Economic Dialogue Series held in Berlin under the theme “Inflation Kills Democracy: Fiscal Rationality as the basis of Functioning Communities” on 21 November 2023. This event was organised by the Federal Ministry of Finance, Germany. Governor Weerasinghe presented Sri Lanka’s success story in reining in inflation following the record high acceleration in 2022. In his speech, he discussed the measures taken by the Central Bank and the Government in curtailing inflation and shared experience on the disinflation strategy and the process. 

The Federal Minister of Finance of Germany, Mr. Christian Lindner; the President of the European Central Bank (ECB), Ms. Christine Lagarde; and Prof. Albrecht Ritschl, London School of Economics, also spoke at the event, among other speakers.