Sri Lanka, Feb. 15 -- Inflation could possibly hover around 2 percentage points above inflation target
Headline inflation is forecast to converge to targeted 5% level over medium term, supported by implementation of appropriate policy measures
Economic growth is expected to continue its rebound over medium term, although at a moderate pace
Sri Lanka's inflation is expected to increase "sizeably" in the third quarter this year (3Q25), with the possibility of it hovering around 2 percentage points above the inflation target in mid-2026, the Central Bank of Sri Lanka (CBSL) said in its monetary policy report that was released yesterday.
"Nonetheless, headline inflation is forecast to converge to the targeted 5 percent level over the medium ter...
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