FX.co ★ Sri Lanka Inflation Rate Slows in February

Annual inflation in Colombo, Sri Lanka’s capital, eased to 1.6% in February 2026, its lowest rate in five months, down from 2.3% in January, which had marked the highest level since July 2024. Food prices rose just 0.2% year-on-year—the smallest increase in a year—following a 3.3% gain in January. In contrast, non-food prices accelerated, climbing 2.3% compared with 1.8% in January. The main upward contributions came from higher costs for housing and utilities, restaurants and hotels, education, health, and clothing and footwear. On a monthly basis, the consumer price index (CPI) fell 0.9% in February, the sharpest decline since August 2024, after a 0.6% increase in January.