The Colombo Consumer Price Index (CCPI, 2021=100)  based headline inflation (year-on-year, Y-o-Y) accelerated further in October 2025 indicating a continued convergence towards the inflation target. Accordingly, headline inflation (Y-o-Y) increased to 2.1% in October 2025 from 1.5% in September 2025, in line with the Central Bank’s near-term projections.

Sri Lanka’s external sector recorded a monthly current account deficit in September 2025, following consecutive monthly current account surpluses registered during January-August 2025. However, cumulative current account surplus for the first nine months is estimated at USD 1.9 billion.

The merchandise trade deficit recorded a year-on-year expansion in September 2025, as import expenditure exceeded USD 2 billion, primarily driven by a surge in vehicle imports.