COLOMBO: Sri Lanka's inflation rose 2.1 percent last year, well below its target of five percent, the central bank said Thursday, but projected a "gradual acceleration" in 2026. While low inflation may appear positive for consumers, a rate below the central bank's target signals underlying economic issues, including weak consumer demand. The Colombo Consumer Price Index (CCPI), the official measure of inflation, rose to 195.8 in December from 191.7 a year earlier, marking a 2.1 percent increase. "Inflation projections... (since) November 2025 indicate a gradual acceleration of inflation towards the target of five percent in the period ahead," the central bank said. Sri Lanka has secured a $206 million emergency loan from the International Monetary Fund (IMF) to meet part of the relief costs.

Source: Indian Express January 01, 2026 09:24 UTC