Sri Lanka, Feb. 16 -- The Central Bank of Sri Lanka forecasts that inflation will rise again in the second quarter of 2025, although the high inflation experienced in 2022/2023 will decrease in 2024.

According to the February 2025 Monetary Policy Report, inflation, which was at a low level after the high inflation periods in 2022/2023, has further decreased in 2024. However, inflation is expected to increase in the second quarter of 2025. Headline inflation is projected to rise to 5% in the third quarter of 2025, likely remaining about 2 percentage points above the inflation target by mid-2026.

The report highlights the contribution to inflation through changes in monthly household unit expenditure in January 2025 compared to January 20...