Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 showed some uptick to record 1.5% in April 2024 compared to 0.9% in March 2024.

Food inflation (Y-o-Y) decelerated to 2.9% in April 2024 from 3.8% in March 2024. Nevertheless, Non-Food Category recorded an inflation (Y-o-Y) of 0.9% in April 2024 compared to the 0.5% deflation observed in March 2024. On a month-on-month basis, inflation continued to decline. Monthly change of CCPI recorded -0.79% in April 2024 due to the price decreases of 0.32% observed in the items of Food category and the price decreases of 0.47% observed in the items of Non-Food category. Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy,  accelerated to 3.4% in April 2024 from 3.1% in March 2024. 

The Financial Stability Board (FSB) Regional Consultative Group for Asia (RCG Asia) met on 29 April 2024 in Colombo1. The discussions were centered around recent financial market developments and vulnerabilities that warranted closer monitoring. Accordingly, the group discussed ways to promote the implementation of FSB regulatory framework for crypto-asset activities across the region and recent developments in artificial intelligence, its growing use in the financial sector, and implications for financial stability. Members also reviewed progress being made within the region on addressing financial risks from climate change and discussed progress on enhancing cross-border payments and the key challenges in making them faster, cheaper, and more transparent and inclusive.