The Central Bank of Sri Lanka (CBSL) has revealed that the cost of living in the country has doubled since 2021, despite a notable slowdown in inflation over the past year.
Speaking at a press conference, CBSL Assistant Governor Dr. Chandranath Amarasekara said that while inflation has eased in 2024 compared to 2023, Sri Lankans continue to face high living costs. “Even when we consider personal income, it is evident that we are in a challenging situation due to elevated price levels and the increased cost of living,” he noted.
Dr. Amarasekara emphasized that although the public may feel some relief thanks to the decline in inflation, the price levels remain significantly higher than three years ago. “If we compare the years 2021 and 2024, the cost of living has effectively doubled,” he said.
He highlighted the need for sustained economic growth to boost incomes across sectors, including public employees, private sector workers, and entrepreneurs. This, he said, is essential to restoring the real purchasing power that many Sri Lankans have lost in recent years.
While there have been salary adjustments—particularly in the public sector—Amarasekara cautioned that these increases often lack a link to productivity. “As economists, we believe salary increments should align with productivity improvements to ensure sustainable economic development,” he added.