Inflation Sri Lanka 2021
Average inflation: 7.0%
Current Inflation
Inflation is very high at 7.0%, far above the ECB target.
Peak and Trough
The highest inflation was in December at 14.0%. The lowest inflation was in January at 3.7%.
- Highest month
- December: 14.0%
- Lowest month
- January: 3.7%
- Difference
- 10.3 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food with an average of 11.1%. The lowest price increase was in Energy with an average of 1.1%.
- Highest increase
- Food: 11.1%
- Lowest increase
- Energy: 1.1%
Historical Context
Current inflation is 1.7% higher than the 5-year average of 5.3%. This approaches the highest level since records began (7.7% in 2017).
- 5-year average
- 5.3%
- 10-year average
- 5.2%
- All-time high (2017)
- 7.7%
- All-time low (2018)
- 2.2%
Trend
Inflation shows an upward trend. Compared to 2020, inflation has risen by +0.8 percentage point.
- Change vs. previous year
- +0.8 percentage points
- Largest monthly swing
- December: +9.4 percentage points
ECB Target
Inflation is 5.0% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for €100 this year will cost approximately €107.00 next year at this inflation rate.
Multi-year trend
Monthly figures 2021
Month overview
| Month | Inflation | Difference vs. 2020 |
|---|---|---|
| January | 3.7% | -3.9 |
| February | 4.2% | -3.9 |
| March | 5.1% | -1.9 |
| April | 5.5% | -0.4 |
| May | 6.1% | +0.9 |
| June | 6.1% | -0.2 |
| July | 6.8% | +0.7 |
| August | 6.7% | +0.5 |
| September | 6.2% | -0.2 |
| October | 8.3% | +2.8 |
| November | 11.1% | +5.9 |
| December | 14.0% | +9.4 |
| Average | 7.0% |
Data source
Data from WorldBank. Last updated: 06/01/2026.