Sri Lanka鈥檚 deflationary streak ended in August, with prices climbing 1.2 per cent, official data showed Friday, as the cash-strapped economy emerges from a meltdown three years ago.
Prices rose in August after 11 consecutive months of deflation, data from the Census and Statistics Department showed.
Food inflation jumped to 2 per cent in August, fuelling overall price rises, while transport and household maintenance costs declined, the department said.
Sri Lanka鈥檚 Colombo Consumer Price Index fell 4.2 per cent in February, equalling the sharpest deflation recorded in July 1960.
Prices have stabilised since the country secured a $2.9-billion bailout from the International Monetary Fund聽 in early 2023 after a financial crash the year before.
The government has since struck debt restructuring deals with international lenders and the IMF has said the economy has stabilised, though recovery remains fragile.
The Central Bank of Sri Lanka has forecast inflation at around 5 per cent by the end of the year, far higher than the year-on-year figure of 1.2 per cent recorded in August.
