SRI LANKA NEWS
April 2026
Compiled by Victor Melder
Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), accelerated in March 2026 as expected due to the impact of the Mideast war. The Central Bank of Sri Lanka (CBSL) yesterday said headline inflation year-on-year (YoY) accelerated to 2.2% in March 2026, up from 1.6% in February. However, it was lower than 2.3% in January. Inflation was stable at 2.1% in October, November and December 2025. Food inflation YoY was up to 0.7% in March, compared to 0.2% in February but remained relatively lower than 3.3% in January and 3% in December. Non-food inflation YoY accelerated to 2.9% in March, up from 2.3% in February and 1.8% in January. On a month-on-month basis, the CCPI recorded an increase of 0.25%, compared to a 0.85% decrease in February. The increase was driven by the non-food category, which contributed 0.52 percentage points largely owing to the increase in prices of the transport sub-category in the CCPI. Food had contributed a negative 0.27 percentage points to the month-on-month CCPI increase. Core inflation YoY accelerated to 2.5% in March 2026, up from 2.1% in February. The CBSL said: “Realised quarterly average inflation for Q1-2026 remains broadly aligned with the recent inflation projections of the Central Bank. Inflation projections made at the monetary policy round in March 2026, based on the latest available data and assumptions amid prevailing geopolitical uncertainties, indicate that inflation is expected to reach the target of 5% in Q2-2026, earlier than previously anticipated. Inflation is projected to remain around the target thereafter, with the support of appropriate policies.” (Financial Times, 2.4.2026)
Increasing the death toll in the human-elephant conflict in the Anuradhapura district, three villagers- two of them in Eppawala and the other in Priyankaragama- had been trampled to death by wild elephants last morning. They had died at the scene. One victim Udaya Chandana (36), was a resident of Palugaswewa in Eppawala and a technical officer of the National Housing Authority.He was father of two children. The other victim, Disanayake Mudiyanselage Mangala Prasad (48), was a farmer of the area. Investigations revealed that they were working in a paddy field under the Amukolewewa tank when a rogue elephant from the nearby jungle struck them. Meanwhile a villager of Priyankaragama Kirihamige Ranga Dharmachandra (51) attending to his home garden crops had been trampled to death by a wild elephant. He was an employee of Anuradhapura teaching hospital. Eppawala and Priayankaragama police are conducting further investigations. (Daily Mirror, 6.4.2026)
The government has announced the cancellation of the weekly Wednesday holiday granted to public sector offices, with effect from April 8. In a circular issued to the Ministry of Public Administration, Provincial Councils and Local Government Secretary, the decision was made in order to ensure the efficient maintenance of essential services across the country. The directive, issued by Presidential Chief of Staff and Commissioner General of Essential Services Prabhat Chandra Keerthi, said that the provision introduced under Public Administration Circular No. 09/2026 granting a mid-week holiday will no longer be in effect from April 8. The move is aimed at streamlining government operations and ensuring uninterrupted public service delivery. (Daily Mirror, 7.4.2026)
A major controversy has erupted over the fate of Yala’s famed male leopard “Lucas,” with authorities launching an investigation into claims that the big cat may have been run over or possibly targeted in a suspected safari jeep incident inside Yala National Park. Wildlife Conservation Department (DWC) Director General Ranjana Marasinghe confirmed that an incident had been reported to him and instructed officials to carry out an immediate investigation. He also urged anyone with video footage or evidence from the day to come forward to assist inquiries. As part of the probe, the Yala safari jeep believed to have been near the leopard at the time has been temporarily suspended by the park warden pending further investigation. Authorities said legal action will be taken against the driver under the Fauna and Flora Protection Ordinance (FFPO) if found guilty. If not, the driver will be cleared of all charges. However, the Yala Safari Jeep Owners’ Association (YSJOA) has denied knowledge of any such incident, stating that they have not encountered any confirmed reports involving their members. The conflicting positions have further intensified the debate surrounding the incident. Meanwhile, unverified social media posts have gone viral, claiming that Lucas may have been killed after being struck by a safari vehicle. Officials have cautioned the public against spreading unconfirmed information while investigations are ongoing.Lucas is one of the most iconic leopards in Yala National Park, widely admired by wildlife enthusiasts and photographers for his striking appearance and frequent sightings in key safari zones. His reported disappearance has sparked widespread concern and raised fresh questions about safari safety and wildlife protection within the park. The investigation remains ongoing. (Daily Mirror, 7.4.2026)
The cost of ingredients required to assort a traditional ‘kevili’ (sweetmeats) table for the Sinhala and Tamil New Year has gone up by 7% in 2026 compared to 2025, and by 2.5 times compared to 2019, before the pandemic and the economic crisis. This was revealed in an annual costing of a typical set of “Avurudu” sweetmeats, published on PublicFinance.lkSri Lanka’s premier economic insights platform maintained by Verité Research. Prices rose for six of the eight items included in the kevili table. The 7.0% increase in 2026 was driven primarily by higher coconut oil and rice flour prices, which together accounted for nearly 80% of the total increase. A kevili table typically includes a range of traditional Sri Lankan sweetmeats symbolising prosperity and happiness. While variations exist across households, common items include milk rice, kokis, bananas, aluwa, kevum, dodol, mun kevum, and butter cake. The analysis used quantities based on recipes from the popular YouTube channel “Appe Amma” for a household of 4-5 persons. Only the main ingredients were costed; utilities (electricity/gas) and spices were not. The price data was sourced directly from the Department of Census and Statistics, including its Open Market Weekly Average Retail prices in the Colombo District for the years 2019 (April Week 1), 2025 (March Week 3), and 2026 (March Week 4). Financial Times, 12.4.2026.
The population reached 21,781,800, with demographic trends pointing to a rapidly ageing society and structural shifts in the workforce, according to the Department of Census and Statistics. The findings were released with the final report of the 15th Census of Population and Housing 2024, marking the first census in the country to utilise information technology for national-scale data collection. The data show that the elderly population aged 60 years and over now accounts for 18% of the total population, while the child population has declined to 20.7%, reflecting a narrowing demographic gap. The Ageing Index stands at 87, indicating 87 elderly persons for every 100 children, while the median age has risen to 35 years from the previous census. Fertility trends continue to weaken, with the Total Fertility Rate at 1.3, remaining below replacement levels, pointing to long-term pressures on labour supply and economic growth. The working-age population remains the largest segment at 61.3%, but dependency dynamics are shifting. The Old-Age Dependency Ratio has risen to 29.4, while the Child Dependency Ratio has declined to 33.7, increasing the burden on the economically active population. Labour force participation stands at 47.3%, leaving more than half of the working-age population economically inactive. The data show a strong gender divide, with 50.6% of inactive females outside the workforce due to domestic and caregiving responsibilities, while 41.3% of inactive males are engaged in education or training. The employment rate among the active labour force is 94%, with unemployment at 6%, though regional disparities persist, with Batticaloa recording the highest unemployment rate at 10.1%. Geographically, the Western Province remains the country’s primary population centre, accounting for 28.1% of the population, with Gampaha district reporting the highest population and Mullaitivu the lowest. Nearly two-thirds of the population is concentrated across the Western, Central, Southern and North-Western provinces. Education indicators show further gains, with national literacy rising to 97.4%, up from 95.7% in 2012. For the first time, the gender gap in literacy has closed, with male and female literacy rates reaching 97.9% and 97.0% respectively. Digital literacy has reached 67.6%, while computer literacy stands at 34.7%, reflecting gradual progress in technology adoption. Health data indicate a rising burden of non-communicable diseases, affecting 19.2% of the population, with high blood pressure and diabetes the most prevalent conditions, particularly among older age groups. Sri Lanka recorded 6.1 million households, with nuclear families remaining the dominant structure. However, single-person households account for 10.5%, with a significant proportion comprising elderly individuals living alone, predominantly women. Migration patterns show that 13% of the population are lifetime migrants, while 672,249 Sri Lankans are temporarily living abroad, largely for employment, with the Middle East remaining the primary destination. Housing and infrastructure indicators show near-universal access to electricity at 98%, while 92.2% of households have access to drinking water within their premises. Firewood remains the primary cooking fuel for 55.4% of households, although LPG usage has increased significantly. (Financial Times, 12.4.2026)
Traffic on the expressways (E01, E02, E03 and E04) generated a total revenue of Rs. 48,500,040 during the 24-hour period from midnight on April 19 to midnight on April 20, 2026, according to an official traffic summary. A total of 128,283 vehicles entered the expressway network, while 130,182 vehicles exited during the same period, indicating a steady flow of traffic with exits slightly exceeding entries. The E01 and E01 Extension recorded the highest traffic volume, with 84,808 vehicle entries and 83,188 exits, generating Rs. 31,715,950 in revenue. Meanwhile, the E03 expressway reported 26,394 entries and 29,038 exits, contributing Rs. 11,835,940. The E04 expressway saw 17,081 vehicles entering and 17,956 exiting, with revenue amounting to Rs. 4,948,150. Meanwhile, cumulative data from April 10 to April 19 shows that the expressway network recorded a total exit traffic of 1,301,012 vehicles, generating revenue of Rs. 489,601,270.The highest daily revenue during this period was recorded on April 10, with Rs. 59,815,450 collected from 161,847 vehicle exits. This was followed by April 11, which saw 153,807 exits and revenue of Rs. 58,208,695. Traffic and revenue declined on April 12, with 118,684 exits generating Rs. 45,266,920, and dropped further on April 13, which recorded 84,211 exits and Rs. 31,598,600 in revenue. From April 14 onwards, traffic showed a gradual increase. April 14 recorded 91,776 exits and Rs. 34,352,975, while April 15 saw a notable rise to 139,480 exits and Rs. 52,529,750 in revenue. On April 16 and 17, exit traffic remained above 138,000, generating Rs. 53,065,250 and Rs. 52,955,345 respectively. April 18 recorded 141,813 exits with revenue of Rs. 53,308,245. On April 19, a total of 130,182 vehicles exited the expressway network, generating Rs. 48,500,040. Overall, the data reflects fluctuations in daily traffic volumes, with peak activity recorded at the beginning of the period, followed by a dip and a gradual recovery towards mid-April. (Daily Mirror, 21.4.2026)
In an encouraging sign for the economy, workers’ remittances increased 17.5% year-on-year (YoY) to $ 814.8 million in March during the first full month of the ongoing Middle East war. This brings total remittances inflows during the first quarter 2026 to nearly $ 2.3 billion, up 26.5% from a year ago, according to the latest Central Bank of Sri Lanka (CBSL) data.The $ 814.8 million inflow in March 2026 is the second highest monthly inflow in history behind $ 879.09 million in December 2025, but above $ 812.73 million in December 2020, $ 751.13 million in January 2026, and $ 729.35 million in January 2018. December and March record the highest remittances inflows as workers send more money to their families back home for the festive season. The strong 1Q 2026 follows a historic performance in 2025, when full-year remittances climbed to $ 8.07 billion, a 23% increase from a year earlier and the highest annual inflow ever recorded. The total exceeded the previous all-time high of $ 7.24 billion in 2016 by about 12%, firmly cementing remittances as Sri Lanka’s largest and most reliable source of foreign exchange during its ongoing post-crisis recovery. During 2025, a total of 310,915 skilled and semi-skilled workers left the country for foreign employment, including 190,609 men and 120,036 women. While total departures declined by 1.2% YoY, remittance inflows increased sharply, highlighting improved earnings abroad and greater confidence in formal transfer mechanisms. (Financial Times, 21.4.2026)
Sri Lanka records a shocking 5,000 new kidney patients progressing to end-stage kidney disease annually, of a 20,000 living with advanced kidney failure. With estimates suggesting that 2 million of the population are affected with some form of kidney disease, a large percentage of whom are unaware of it, the Ministry of Health warned that the disease, despite being preventable, has become a national burden. Additional Secretary to the Ministry of Health, Dr Champika Wickramasinghe, maintained that the disease tends to go undetected until significant damage has already occurred, and that the country needs to shift its focus towards catching it far earlier than it currently does..(Ceylon Today, 18.4.2026)
Gross official reserve assets held by the Central Bank of Sri Lanka (CBSL) dipped 3.45% month-on-month (M-o-M) to $ 7.01 billion as of end-March 2026. According to data released by the CBSL last Friday, foreign currency reserves fell 4% M-o-M to $ 6.79 billion in March, down from $ 7.06 billion in February, while gold holdings increased 11% M-o-M to $ 222 million in March from $ 200 million in February. According to the CBSL, the short-term drain on reserves during the next 12 months is estimated at $ 2.14 billion, with $ 764 million within three months and $ 1.38 billion within the next 12 months. The CBSL said the aggregate short and long positions in forwards and futures in foreign currencies vis-à-vis the domestic currency (including the forward leg of currency swaps) is estimated at $ 3.9 billion, with a major portion of swaps to be rolled over.
Last week, the International Monetary Fund (IMF) said that reserves, real GDP growth, and revenue mobilisation had outperformed expectations, and warned against prolonged shocks from the ongoing Mideast war. The IMF said: “It is important for monetary policy to remain data-dependent and agile to safeguard price stability in the face of shocks. Central Bank independence should continue to be upheld, including by continuing to prohibit monetary financing of the Budget. Rebuilding foreign reserves while allowing for exchange rate flexibility is a necessity amid global uncertainty. Resolving non-performing loans, promoting sound credit growth, and addressing vulnerabilities in some small licenced finance companies will help safeguard financial stability.” In March, CBSL Governor Dr. Nandalal Weerasinghe rejected the need for immediate import controls or capital flow restrictions to contain the economic challenges from the Middle East war. The Governor said the CBSL would continue to operate under a flexible exchange rate regime within an inflation-targeting framework, where the currency is determined by demand and supply conditions and broader macroeconomic fundamentals. However, he said the CBSL would intervene to manage excess volatility but declined to comment on what the tolerance level would be. (Financial Times, 21.4.2026)
DIG in charge of Traffic Control and Road Safety Range, W. P. J. Senadheera said that there has been a sharp increase in road accidents and the number of deaths from accidents during the New Year season – April 10 to 19, in comparison with the previous year. Addressing a press conference held yesterday (20), DIG Senadheera said that there was an increase of 18 fatal road accidents with an increase of 20 deaths from accidents during the period stated in 2026 compared to last year. “From April 10 to 19 – the New Year season – there have been 88 vehicle accidents with an increase of 18 accidents compared to 70 accidents in the same period last year. The number of deaths from accidents during this period this year was 92 and has increased by 20 compared to 72 in 2025. “Compared to last year, there has been an increase of 94 serious accidents. There has been an increase of 49 minor accidents too. Also, there has been an increase of 48 accidents resulting in losses. He also said that legal action will be taken against 4,225 drunk drivers who were apprehended between April 12 to 18 this year. DIG Senadheera emphasised that the Police have especially raised awareness through the media and engaged in security duties to minimise and prevent road accidents during the New Year season. He said that unfortunately, despite all the awareness made and action taken to prevent and minimise road accidents during the festive season, still this situation has occurred. “We request the public and drivers to support us in reducing serious road accidents and inform us about errant drivers especially young motorcycle and three-wheeler drivers who do not abide by the traffic laws and we will enforce the law strictly against them,” DIG Sendheera said. (Daily News, 21.4.2026)
Sri Lanka’s tea production fell sharply in March, hit by prolonged dry and hot weather conditions, according to data analysed by Asia Siyaka Commodities PLC. Output declined to 20.8 million kilograms (Mn/Kgs), down from 24.4 Mn/Kgs registered in March last year, a drop of 3.5 Mn/Kgs or 14.5% year-on-year (YoY) While production in 2024 was lower at 19.6 Mn/Kgs, the latest figure still ranks among the weakest on record, exceeded only by the unusually low 13.5 Mn/Kgs seen during the COVID-19 lockdown period .It added that all elevation categories reported declines compared to a year earlier. High Grown and Mid Grown teas were the hardest hit, registering drops of 17% and 22%, respectively. On a cumulative basis, first-quarter production also weakened. Total output fell to 59.6 Mn/Kgs from 61.7 Mn/Kgs in the corresponding period of 2025. The most notable declines were recorded in the Low Grown and Mid Grown segments, which contracted by 3% and 8%, respectively. The data highlighted the vulnerability of Sri Lanka’s tea sector to adverse weather conditions, particularly during key harvesting periods.(Financial Times, 22.4.2026)
