Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 70.2% inAugust 2022 from 66.7% in July 2022. This increase in Y-o-Y inflation was mainly driven by the monthly increases of both Food and Non-Food categories. Accordingly, Food inflation (Y-o-Y) increased to 84.6% in August 2022 from 82.5% in July 2022, while Non-Food inflation (Y-o-Y) increased to 57.1% in August 2022 from 52.4% in July 2022.

Monthly change of NCPI recorded at 2.45% in August 2022 due to price increases observed in items of both Food and Non-Food categories which were 0.91% and 1.53%, respectively. Accordingly, within the Food category, increases were observed in prices of fresh fish, eggs, biscuits and fruits. However, prices of dhal, rice and sugar decreased during the month. Further, within the Non-Food category, increases were observed in prices of Housing, Water, Electricity, Gas and Other Fuels (Electricity, Materials for maintenance and Kerosene), Furnishing, Household Equipment and Routine Household Maintenance (Washing soap) and Miscellaneous Goods and Services subcategories during the month. It is noteworthy that Transport (Petrol, Diesel and Bus fare) subcategory recorded a decline during the month.

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, imposed a penalty as indicated below amounting to Rs. 1.0 million to enforce compliance on Financial Institutions. The money collected as penalties were credited to the Consolidated Fund.