Sri Lanka’s overall rate of inflation, measured by the National Consumer Price Index (NCPI) on a year-on-year basis, rose to 2.4% in March 2026 from 1.6% in February, the Department of Census and Statistics said on Tuesday.
The NCPI reading is the second consecutive monthly acceleration, confirming that the disinflationary phase that characterised most of 2024 and 2025 has ended. The index captures consumer price movements across the full economy and tends to run slightly higher than the Colombo Consumer Price Index (CCPI) due to its broader basket.
March’s reading lands within the Central Bank’s target band of around 5% but is running well below the ceiling, giving the Monetary Board flexibility on policy rates even as external pressures build.
The rise comes against a backdrop of renewed energy-shock pressures highlighted by Fitch earlier this month, with higher global oil and fertiliser prices feeding through to domestic costs. Brent crude has reversed from an April low of around US$88 per barrel back above US$95 on unresolved US–Iran tensions and the Hormuz standoff.
The Department of Census and Statistics is expected to publish a detailed breakdown by food and non-food components, along with core inflation excluding volatile items, in its full March release. Food inflation has historically driven month-on-month swings in the index, while non-food prices are more sensitive to fuel and transport costs.
The Central Bank’s Monetary Policy Board will weigh the NCPI alongside the CCPI, wage indicators and global commodity trends at its next rate review.
