The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) increased to 8.0% in August 2026 from 7.3% in July 2026, primarily due to the statistical base effect in food inflation. Meanwhile, food inflation (Y-o-Y) increased to 8.5% in August 2026 from 6.3% in July 2026, contributing mainly to the increase in headline inflation, while non-food inflation (Y-o-Y) decelerated to 7.7% in August 2026 from 7.8% in July 2026.
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CCPI-based headline inflation accelerated in August 2026
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External Sector Performance - July 2026
The external current account recorded a deficit of US$142 million in July 2026, remaining in the deficit for the fourth consecutive month reflecting the impact of developments in the Middle East. Consequently, the cumulative current account recorded a deficit of US$ 387 million during January-July 2026, compared to a surplus during the corresponding period of 2025.
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Release of ‘Economic and Social Statistics of Sri Lanka – 2026’
‘Economic and Social Statistics of Sri Lanka – 2026’, an annual release of socio-economic statistics of the Central Bank of Sri Lanka, is now available for public access. This is an online data release containing long series of data in an easily accessible and downloadable format, catering to the data requirements of various stakeholders.
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Sri Lanka PMI - Construction expanded in July 2026
The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, increased to 61.4 in July 2026, indicating continued expansion in construction activities. Many survey respondents highlighted the sustained flow of construction work despite input constraints, particularly the short supply of bitumen.
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Land Valuation Indicator – First Half of 2026
The Land Valuation Indicator (LVI) compiled for Colombo District increased by 5.9 per cent at a moderate pace during the first half of 2026, compared to the corresponding period of 2025. All three sub indicators of the LVI recorded moderate year-on-year increases during the period, with Residential LVI increasing by 6.7 per cent, followed by Commercial LVI by 5.7 per cent and Industrial LVI by 5.2 per cent. Compared to the second half of 2025, the LVI and all three sub indicators increased in the first half of 2026. In this regard, Residential and Industrial LVIs recorded higher increases than those observed in the second half of 2025.
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SL Purchasing Managers’ Index (PMI) – July 2026
Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in July 2026.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.0 in July 2026, indicating continued expansion in manufacturing activities. All sub-indices contributed positively to this improvement.
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The Central Bank of Sri Lanka releases the Monetary Policy Report – August 2026
The Central Bank released its second Monetary Policy Report for 2026 in keeping with the requirements of the Central Bank of Sri Lanka Act, No. 16 of 2023. The biannual Monetary Policy Report provides forward-looking insights about the economy, particularly inflation and economic growth outlook, and risks to projections. Through this Report, the Central Bank strives to improve its transparency and accountability by communicating the rationale behind its recent monetary policy decisions.
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Clarification on Recent Media Reports Regarding the CBSL Governor's Remarks
The Central Bank of Sri Lanka (CBSL) has observed that certain remarks made by the Governor of the CBSL during a recent media interview have been misinterpreted and subsequently reported by several print and electronic media outlets.
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Notice to General Public on Prohibited Pyramid Schemes
In terms of Section 83 (C) of the Banking Act, No. 30 of 1988, as amended, the Central Bank of Sri Lanka has conducted an investigation, ascertained and determined that “TM App” has engaged, conducted and promoted a prohibited scheme.
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‘Shaping the future through digital payments’ - Central Bank of Sri Lanka to promote digital payments in Jaffna
The Central Bank of Sri Lanka (CBSL) has organised a Digital Payments Promotional Programme in Jaffna on 07 and 08 August 2026 at Cargills Square, Jaffna, from 8.30 a.m. to 7.00 p.m., with the objective of raising awareness of digital payment methods among government officials, the business community, and members of the public. Hon. Mr. Nagalingam Vethanayahan, Governor of the Northern Province, will grace the inaugural session as the Chief Guest. The programme will also be attended by senior officials of CBSL, Mr. M. Piiratheepan, District Secretary - Jaffna, officials of banks, non-bank financial institutions, and LankaPay (Pvt.) Ltd. (LPPL), the operator of the national retail payment system.