The food category experienced a Y-o-Y deflation of 0.3% in September 2024, a significant shift from the 0.8% inflation recorded in August 2024. Similarly, the non-food category also saw a Y-o-Y deflation of 0.5% in September 2024, compared to the 0.4% inflation in the previous month.

The Colombo Consumer Price Index fell almost continuously from March 2024, except June when the currency also came under pressure from excess liquidity from dollar purchases.

Sri Lanka’s central bank has produced almost no inflation for 24 months since September 2024, when its deflationary policy began to show up in the balance of payments.