📈 Sri Lanka National Inflation Hits Over 3-Year High of 7.2% in July

• Headline Inflation Overview • Sri Lanka's National Consumer Price Index (NCPI) accelerated to 7.2% YoY in July 2026 (up from 6.5% in June), reaching its highest level since June 2023. • The NCPI rose 0.5% MoM to reach a record 223.4 points, increasing average household market basket expenditure by Rs. 564.05. • Sector Breakdown & Drivers • Non-food inflation remained heavily elevated at 9.2% YoY (contributing 5.04 percentage points), driven primarily by transport (+2.23 pp) as well as housing, water, electricity, gas & other fuels (+1.21 pp). • Food inflation surged to 4.9% YoY from 3.3% in June (contributing 2.21 percentage points). Key upward price drivers included green chillies, dried fish, milk powder, and eggs, offset by price drops in rice, coconuts, and chicken. • Macro Context • Based on provisional DCS data (base 2021=100), national inflation continues an upward trajectory following 5.4% in May and 4.7% in April, reflecting persistent price pressure across non-essential services and key consumer goods nationwide.