The Colombo Consumer Price Index1 (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained marginally above the target in May 2026, reflecting the impact of upward adjustments to domestic energy prices amidst the ongoing conflict in the Middle East. Accordingly, headline inflation (Y-o-Y) was recorded at 5.5% in May 2026 compared to 5.4% in April 2026.

The Sri Lanka Purchasing Managers’ Index for Construction    (PMI – Construction), as reflected by the Total Activity Index, declined to 45.7 in April 2026, mainly due to the seasonal slowdown associated with the Sinhala and Tamil New Year period. Further, many survey respondents cited input shortages, particularly of petrochemical-based raw materials, and rising costs stemming from the conflict in the Middle East as challenges to the timely execution of planned work.