Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 5.1 per cent in March 2021 from 4.2 per cent in February 2021. This was due to the statistical effect of the low base prevailed in March 2020. Meanwhile, Food inflation (Y-o-Y) increased to 8.8 per cent in March 2021 from 6.9 per cent in February 2021 and Non-Food inflation (Y-o-Y) increased marginally to 2.0 per cent in March 2021 from 1.9 per cent in February 2021. The change in the NCPI measured on an annual average basis decreased to 5.3 per cent in March 2021 from 5.5 per cent in February 2021.

The Monetary Board of the Central Bank of Sri Lanka (CBSL) issued directions on foreign currency borrowings by Licensed Finance Companies (LFCs) on 9th April 2021 with a view to provide flexibility for LFCs to obtain low-cost funding from foreign sources to support their business expansions. The objectives of these directions are to stabilise any financial volatilities created by the foreign funding exposures of LFCs and provide a risk management framework for such foreign currency borrowings.