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CCPI-based headline inflation accelerated further in June 2026

The Colombo Consumer Price Index  (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) accelerated further in June 2026, as expected, reflecting the pass-through of continued upward adjustments to domestic energy prices due to the Middle East conflict. Accordingly, headline inflation (Y-o-Y) was recorded at 6.8% in June 2026 compared to 5.5% in May 2026.

Non-Food inflation (Y-o-Y) accelerated to 8.4% in June 2026 from 7.8% in May 2026, contributing mainly to the increase in headline inflation. Food inflation (Y-o-Y) also accelerated to 3.6% in June 2026 from 0.9% in May 2026.

External Sector Performance - May 2026

The external sector performance continued to reflect the impact of the war in the Middle East, with the current account recording a deficit for the second consecutive month in May 2026.

IMF Staff Concludes Visit to Sri Lanka

An International Monetary Fund (IMF) Mission team led by Mr. Evan Papageorgiou visited Sri Lanka from 24 to 30 June 2026 to assess recent macroeconomic developments and discuss the authorities’ progress in implementing the economic reform program supported by the IMF’s Extended Fund Facility (EFF) arrangement. At the conclusion of the visit, the IMF issued the following press release on 30 June 2026, which can be accessed from the link below.

Sri Lanka PMI - Construction expanded in May 2026

The Sri Lanka Purchasing Managers’ Index for Construction     (PMI – Construction), as reflected in the Total Activity Index, increased to 59.1 in May 2026, indicating an expansion in construction activities. Most survey respondents reported a resumption of construction activities during the month, following the slowdown experienced in the April festive period.

SL Purchasing Managers’ Index (PMI) – May 2026

Purchasing Managers’ Indices indicate improvements in both Manufacturing and Services activities in May 2026.

Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in May 2026, indicating an expansion in manufacturing activities compared to April 2026. All sub-index values recorded above the neutral threshold during the month, contributing to the overall increase in the index value. However, respondents continued to highlight the challenging operating environment associated with the Middle East conflict.

Kasagala Green Plantation (Private) Limited: Statement made at the “Pini Viyana” TV Programme aired on ITN on 08.06.2026

It has been brought to the notice of the Central Bank of Sri Lanka (CBSL) that Mr. Malwattage Ranjith Nandana Pieris, Director of Kasagala Green Plantation (Private) Limited, on 08.06.2026 on “Pini Viyana” television programme on Independent Television Network, Sri Lanka (ITN) had stated, inter alia, that Kasagala Green Plantation (Pvt) Ltd. (KGPL):

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