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Sri Lanka's Inflation Rises to 7.3% in July as Construction Activity Expands
Sri Lanka’s construction sector showed expansion in June 2026, with the Purchasing Managers Index reaching 60.0, driven by projects awarded in earlier months. Survey respondents reported ongoing shortages of key raw materials, especially bitumen, and a persistent lack of skilled construction workers, which constrained the pace of activity.
In July, headline inflation accelerated to 7.3% year‑on‑year, above the central bank’s 5% medium‑term target. Food prices rose 6.3% while non‑food prices eased to 7.8%. Central Bank Governor Dr Nandalal Weerasinghe said the 100‑basis‑point rate hike implemented in May is beginning to temper domestic demand and expects inflation to return to target over the medium term. Gross official reserves stood at roughly US$6.45 billion at the end of June, with expectations to exceed US$8 billion by year‑end.
Entities
Central Bank of Sri Lanka · Dr Nandalal Weerasinghe · Gross official reserves · Sri Lanka · construction sector
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] Sri Lanka's headline inflation was 7.3% in July 2026. economynext.com · lankanewsweb.net
- [○ 1 SOURCE] Construction firms reported a shortage of skilled workers. economynext.com
- [○ 1 SOURCE] Non‑food inflation was 7.8% in July 2026. lankanewsweb.net
- [○ 1 SOURCE] Sri Lanka's gross official reserves were about US$6.45 billion at the end of June 2026. lankanewsweb.net
- [○ 1 SOURCE] Construction firms reported shortages of key raw materials, especially bitumen. economynext.com
- [○ 1 SOURCE] Central Bank Governor Dr Nandalal Weerasinghe said monetary tightening is beginning to cool domestic demand. lankanewsweb.net
- [○ 1 SOURCE] Sri Lanka's construction sector Purchasing Managers Index was 60.0 in June 2026. economynext.com
- [○ 1 SOURCE] Food inflation was 6.3% in July 2026. lankanewsweb.net