SriLanka, Oct. 1 -- Sri Lanka will face several more months of elevated inflation, as the energy shock spreads through the economy, with the Central Bank of Sri Lanka (CBSL) projecting inflation to remain in high single digits through early 2027.

The CBSL held its Overnight Policy Rate at 8.75 percent, following its September 29 board meeting, stating that the effects of monetary tightening in May and other measures had already materialised to a large extent.

"Headline inflation is projected to remain in high single digits through 1Q 2027, before easing towards the 5 percent target," it said in its September monetary policy review.

Headline inflation rose to 8.0 percent in August, as the higher energy costs passed through multiple sect...