FX.co ★ Sri Lanka Producer Inflation Highest Since 2023

Producer prices in Sri Lanka rose 5.0% year-on-year in July 2026, up from a revised 4.1% in June, marking the highest increase since May 2023. Agricultural prices returned to growth, increasing 0.1% after a 10.7% decline in June, driven mainly by higher prices for non-perennial crops (3.5% vs -8.2%) and animal production (14.8% vs 10.4%). Prices in manufacturing also accelerated (5.3% vs 4.2%), largely due to a sharp rise in coke and refined petroleum products, which surged 51.5% compared with 3.5% in June, while prices for rubber and plastics products climbed 16.6% from 6.0%. By contrast, inflation moderated in electricity, gas, steam, and air conditioning supply (23.0% vs 29.4%), as well as in water collection, treatment, and supply (5.5% vs 6.1%). On a monthly basis, producer prices increased 0.5% in July, recovering from a 1.2% decline in June.