Sri Lanka, Oct. 30 -- Sri Lanka could experience higher inflation if global oil prices remain elevated for an extended period, Central Bank Governor Nandalal Weerasinghe has warned.

Inflation, measured by the Colombo Consumer Price Index (CCPI), reached a 40-month high of 8.1% in September, largely driven by fuel prices reflecting market conditions and their wider impact on the economy.

The state-owned Ceylon Petroleum Corporation (CPC) has increased fuel prices by around 50% since the outbreak of the conflict in the Middle East.

Speaking at an investor forum this week, Weerasinghe said the Central Bank had factored in the potential impact of higher oil prices in June, based on expectations that prices would settle at around US$90 a ba...