Headline inflation in Sri Lanka, as measured by the National Consumer Price Index, dropped to minus 4 percent in January. The year-on-year inflation was recorded at minus 2 percent in December. According to data released by Sri Lanka’s Department of Census and Statistics, inflation has remained in negative territory for five months.

Food inflation has also decreased to -2.5% in January 2025 from the -1.0% recorded in December 2024. Non-food inflation has decreased to -5.2% in January 2025 from the -2.9% reported in December 2024. Earlier last month, the Central Bank of Sri Lanka, in the first monetary policy review of 2025, had said that inflation is expected to remain in negative territory for a few months before moving towards the targeted 3-5% range.