Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) decreased to 3.9 per cent in April 2021 from 4.1 per cent in March 2021. This was driven by monthly decreases of prices of items in the Food category. Meanwhile, Food inflation (Y-o-Y) decreased to 9.0 per cent in April 2021 from 9.6 per cent in March 2021, while Non-food inflation (Y-o-Y) remained unchanged at 1.8 per cent in April 2021.

The change in the CCPI measured on an annual average basis decreased marginally to 3.9 per cent in April 2021 from 4.0 per cent in March 2021.

Monthly change of CCPI recorded a marginal decline in April 2021. This was due to price decreases observed in items of the Food category. Within the Food category, prices of coconut, vegetables, red onion and big onion decreased in April 2021. Meanwhile, prices of items in the Non-Food category recorded an increase during the month mainly due to price increase observed in the Transport (lubricant oil) sub-category.

Regulations issued under the Foreign Exchange Act, No. 12 of 2017 (FEA) have been revised for further simplification and clarity improvement, with the objectives of achieving greater efficiency in the conduct of cross-border foreign exchange transactions alongside further facilitating economic activities of the stakeholders through greater convenience of doing business.

These revised foreign exchange policy framework as highlighted above, has been implemented with effect from 22 March 2021. Inter-alia, key highlights of policy measures so introduced, are as follows.