Sri Lanka, Aug. 3 -- Sri Lanka's headline inflation accelerated to 7.3% in July 2026, while the country's merchandise trade deficit widened sharply during the first half of the year, according to the Central Bank of Sri Lanka's latest Weekly Economic Highlights.

The report said the Colombo Consumer Price Index (CCPI, 2021=100)-based headline inflation increased from 6.8% in June to 7.3% in July. Food inflation stood at 6.3%, while non-food inflation reached 7.8%. Core inflation also edged up to 4.4% from 4.0% recorded in June.

In the real sector, the Purchasing Managers' Index (PMI) for the construction industry expanded in June on a month-on-month basis, reflecting improved activity. The external sector showed that Sri Lanka's merchand...