The inflation rate in Colombo, Sri Lanka’s capital, rose to 8.0% in August 2026 from 7.3% in the previous month, above market expectations of 7.7%. This marked the highest reading since June 2023, as food inflation climbed to an over three-year high of 8.5% from 6.3% in July. In contrast, non-food prices edged down to 7.7% from 7.8%, as costs eased in housing and utilities (5.1% vs 5.4%) and transport (16.7% vs 17.2%). Meanwhile, inflation increased for food and non-alcoholic beverages (8.5% vs 6.3%), clothing and footwear (1.4% vs 0.8%), furnishing and equipment (6.6% vs 5.4%), health (3.4% vs 3.0%), communication (0.9% vs 0.5%), restaurants and hotels (11.1% vs 10.6%), and miscellaneous goods and services (6.8% vs 6.2%). On a monthly basis, consumer prices ticked higher to 0.3% in August from 0.2% in the previous month.