Business

Sri Lanka’s low and middle income households hit harder by stubborn non-food inflation

Published

3 years ago

2023/04/24

Monthly change of the National Consumer Price Index recorded at 0.36 per cent in March 2023 mainly due to price increases observed in items of the non-food category which amounted to 1.30 per cent

by Sanath Nanayakkare

As per the basket of goods and services tracked by the Statistics Department of the Central Bank of Sri Lanka, a downturn in the prices of food has helped inflation to drop over the past few months. But stubborn price increases in the non-food category are still marking an upward trend and it has hit harder on Sri Lanka’s working-class households.In such circumstances and with no growth of nominal wages, the purchasing capacity of the squeezed working-class has eroded.

According to Weekly Economic Indicators of the Central Bank, The food inflation recorded at 42.3 per cent, while the non-food inflation recorded at 54.9 per cent in March 2023. Monthly change of the NCPI recorded at 0.36 per cent in March 2023 mainly due to price increases observed in items of the non-food category, which amounted to 1.30 per cent.

“Consumer confidence in Sri Lanka saw significant improvement last month despite pessimistic sentiment overall, suggesting the agreement with the International Monetary Fund (IMF) had lifted perceptions. However, the current decline in business activity seems to be mainly driven by increases in non-food category and companies suspending salary or wage increases due to financial constraints,” a business analyst told The Island Financial Review on condition of anonymity.

“On the one hand, the government must avoid any additional costs on business as it will jeopardise retailers’ ability to keep prices affordable throughout this cost-of-living crisis. On the other hand, companies mustn’t exploit Inflation to pad their bottom line. More often than not, it looks as if many companies are raising prices more by choice than necessity,” he said.

When asked what the improved Purchasing Managers’ Indices released by the Central Bank for Manufacturing and Services activities In March 2023 and the appreciation of Sri Lanka rupee against the US dollar by 13.1 per cent during the year up to 21st April 2023 would mean for ordinary consumer’s purchasing power, he said,” Those are positive macroeconomic indicators, but they have little impact on working class consumer power. Consumer prices reflect changes in producer prices, taxes, high interest rates etc. When all that combines with a wage freeze for an unforeseeable period of time, it kills the purchasing power of the working-class. Non-food items cannot be classified as non-essential commodities or services. How could one say clothing, footwear, telecom, medicine, healthcare, household items, tuition etc. are non-essential? That doesn’t make sense,” he said.

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Business

Sri Lanka secures 10% US tariff rate: JAAF thanks the President and government for decisive action

Published

20 hours ago

2026/07/25

Thilina Walpola

Today’s announcement by USTR of the finality of the Section 301 investigations into countries’ ability to impose and effectively enforce a prohibition on the importation of goods produced with forced labour sees 18 countries placed on a 10% tariff, with the balance of 42 countries facing a 12.5% tariff.

Initial indications were that Sri Lanka would fall into the 12.5% category, a position that would have placed the country at a real disadvantage against a number of key competitor nations.

Following Sri Lanka’s submissions to the USTR earlier this month, JAAF is pleased to see that Sri Lanka is now among the countries placed on the 10% tariff rate, on par with competitors including Bangladesh, Pakistan, India, and Cambodia.

Sri Lanka’s apparel industry competes in a crowded field, and even a 2.5 percentage point difference in tariff treatment can be the difference between winning and losing an order to a rival sourcing destination. Securing parity with Bangladesh, Pakistan, India, and Cambodia protects the competitiveness of an industry that remains the country’s largest export earner and a major source of employment, particularly for women, across the country.

JAAF recognises that this result did not happen by chance. It reflects sustained, coordinated engagement between industry and government at every level, from the submissions made to USTR to the direct representations carried out in Washington. We view this as a strong example of what can be achieved when the private sector and government work in close partnership on issues that directly affect Sri Lanka’s export competitiveness.

We remain committed to continuing this collaboration, both to safeguard the gains secured on Thursday and to ensure Sri Lanka’s apparel and textile industry is well positioned to compete on a level playing field internationally.

Business

CAHM students shine at National Bartenders Competition and Dainties 2026

Published

20 hours ago

2026/07/25

Thilina Walpola

Students of the Colombo Academy of Hospitality Management (CAHM) at SLIIT once again demonstrated their talent, creativity, and professional excellence by securing outstanding achievements at two prestigious national hospitality competitions held recently in Sri Lanka.

The Colombo Academy of Hospitality Management (CAHM) is Sri Lanka’s leading private hospitality education institute, established in 2013 and located at the SLIIT Main Campus in Malabe. Renowned for delivering internationally recognised qualifications in partnership with the William Angliss Institute (RTO 3045), Australia—the Australian Government’s specialist hospitality education institute and the country’s leading provider of hospitality, tourism, foods and events education—CAHM offers Australian-standard vocational qualifications that combine international best practices with hands-on practical training and strong industry relevance, enabling graduates to pursue rewarding careers around the world.

At the 31st National Bartenders Competition (NBC), organized by the Sri Lanka Hospitality Graduates Association (SLHGA) in partnership with International Distillers Limited (IDL), CAHM student Anurasi Chandrasoma (Commercial Cookery Batch 22) emerged as the Winner in the highly competitive Hotel School Category. The competition, held on 26 May 2026 at the Sri Lanka Institute of Tourism and Hospitality Management (SLITHM), Colombo, attracted more than 75 participants from hospitality education institutions across the country.

Representing CAHM alongside the winner were Dishala Gunawardhana (Hospitality Management Batch 37), Sunera Sathindu (Commercial Cookery Batch 21), and Devindu Amarasekara (Patisserie Batch 11), all of whom showcased exceptional bartending skills and professionalism. The achievement marks another significant milestone for CAHM, reinforcing its reputation as one of Sri Lanka’s leading hospitality education institutions.

Business

Asia-Pacific business leaders to convene in Sri Lanka for UN Global Compact’s flagship regional event

Published

20 hours ago

2026/07/25

Thilina Walpola

Asia-Pacific stands at the forefront of one of the defining transitions of our time. Home to many of the world’s fastest-growing economies, the region is also confronting some of the world’s most pressing sustainability challenges—from climate change and biodiversity loss to widening inequalities, geopolitical uncertainty and rapid technological transformation. As these challenges reshape the global business landscape, businesses are increasingly being called upon not only to respond, but to lead.

Against this backdrop, Sri Lanka will host Forward Faster Now | APAC 2026: Driving Business Leadership for Sustainable and Inclusive Growth, the United Nations Global Compact’s flagship regional event for Asia-Pacific. Bringing together more than 200 business leaders, sustainability practitioners, policymakers, representatives from the United Nations and UN Global Compact Country Networks from across the region, the two-day event will provide a platform to strengthen partnerships, exchange practical solutions and mobilize business leadership in support of the Ten Principles of the United Nations Global Compact and the Sustainable Development Goals (SDGs).

Led by the UN Global Compact Asia-Pacific Regional Hub and hosted in collaboration with UN Global Compact Network Sri Lanka, the regional event reflects a shared commitment to advancing responsible business and strengthening regional collaboration at a time when sustainable development depends on collective leadership and cross-sector cooperation.

The event will welcome Sanda Ojiambo, Assistant Secretary-General, CEO & Executive Director of the United Nations Global Compact, whose presence spotlights the strategic importance of the Asia-Pacific region within the United Nations Global Compact. Her first official visit to Sri Lanka signals the growing role of the region in driving responsible business and sustainable development, while offering participating companies a unique opportunity to engage with global leadership, showcase their sustainability journeys, and help shape the next chapter of collective action towards the Sustainable Development Goals.

Alongside Sanda Ojiambo, the Forum will also convene more than 60 global and regional leaders from business, the United Nations and civil society, including Dilhan C. Fernando, Chairman of Dilmah Ceylon Tea Company and Chairman of UN Global Compact Network Sri Lanka, and Sandra Wu, ESG Executive Adviser at Mirait One Corporation, fostering dialogue and collaboration to accelerate business leadership for sustainable and inclusive growth across Asia-Pacific.

Forward Faster Now | APAC 2026 also marks an important milestone in advancing the United Nations Global Compact’s 2026–2030 Strategy, which places renewed emphasis on equipping businesses with the knowledge, tools and partnerships needed to accelerate sustainable business transformation, catalyzing collaboration to address shared global challenges, and advancing responsible business leadership as a cornerstone of sustainable development. As one of the first flagship regional events aligned with this strategic direction, the event will help translate global ambition into regional action by connecting leaders, sharing practical experience and fostering the partnerships needed to create lasting impact.

Register Your Interest

Forward Faster Now | APAC 2026 will take place in Colombo, Sri Lanka, on 11–12 August 2026.

To register your interest or learn more about the event, please contact:

Chamath Kalupahana

Country Focal Point – Forward Faster Now | APAC 2026

Manager – Participant Engagement & Strategic Planning

UN Global Compact Network Sri Lanka

Email: chamath@unglobalcompact.org.lk