Has Sri Lanka Truly Emerged from Its Deflationary Phase?

Has Sri Lanka Truly Emerged from Its Deflationary Phase?

Sri Lanka’s economy ended 2025 on a note of cautious stability, with the Central Bank of Sri Lanka (CBSL) highlighting the conclusion of an eleven-month deflationary period in its Monetary Policy Report for February 2026. Inflation turned positive in August 2025 and has since followed a gradual path, remaining unchanged for three consecutive months from […]

Will Sri Lanka’s Inflation Reach the 5% Target by Mid-2026?

Sri Lanka Inflation Slows to 1.6% in February 2026: Mixed Impact on Households

Summary of the analysis The Central Bank of Sri Lanka (CBSL) has maintained its key policy rates unchanged in the first Monetary Policy Review of 2026, announced on 28 January 2026. The Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) remain at 8.25% and 9.25%, respectively. More importantly for the public, the […]