Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), decreased to 5.7 per cent in September 2021 from 6.0 per cent in August 2021. This was due to the statistical effect of the high base prevailed in September 2020. Subsequently, Food inflation (Y-o-Y) decreased to 10.0 per cent in September 2021 from 11.5 per cent in August 2021, while Non-food inflation (Y-o-Y) increased to 3.8 per cent in September 2021 from 3.5 per cent in August 2021.

The CCPI, measured on an annual average basis, increased to 4.5 per cent in September 2021 from 4.3 per cent in August 2021.

Sri Lanka’s merchandise export sector has shown a notable improvement in 2021 compared to the pandemic-affected 2020. As per the latest Customs data, export earnings have averaged US dollars 985 million during the eight months ending August 2021 compared to a monthly average of US dollars 837 million in 2020, while the average earnings have amounted to US dollars 1,064 million during June-August 2021. This is an appreciable development as the merchandise export sector (comprising diverse products) is the largest foreign exchange earner in most countries, including Sri Lanka.