The Colombo Consumer Price Index (CCPI, 2021=100)1 based headline inflation (year-on-year, Y-o-Y) accelerated in March 2026. Accordingly, headline inflation (Y-o-Y) was recorded at 2.2% in March 2026 compared to 1.6% in February 2026.
Food inflation (Y-o-Y) accelerated to 0.7% in March 2026 from 0.2% in February 2026. Meanwhile, Non-Food inflation (Y-o-Y) accelerated to 2.9% in March 2026 from 2.3% in February 2026.
On a month-on-month basis, the CCPI recorded an increase of 0.25% in March 2026. The increase was driven by the Non-Food category, which contributed 0.52 percentage points, largely owing to the increase in prices of the Transport sub-category, while the Food category contributed -0.27 percentage points.
Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, also accelerated to 2.5% in March 2026 from 2.1% in February 2026.
Realised quarterly average inflation for Q1-2026 remains broadly aligned with the recent inflation projections of the Central Bank. Inflation projections made at the monetary policy round in March 2026, based on the latest available data and assumptions amid prevailing geopolitical uncertainties, indicate that inflation is expected to reach the target of 5% in Q2-2026, earlier than previously anticipated. Inflation is projected to remain around the target thereafter, with the support of appropriate policies.
