Inflation
Inflation and real terms
Rs 1 million in 2017 does not buy what Rs 1 million buys today. This page explains how Budgets LK adjusts amounts for price changes so years can be compared fairly.
Why adjust for inflation?
When prices rise, the same number of rupees buys less. A ministry whose budget rises 20% while prices also rise 20% has not really received more. Comparing printed figures alone can therefore mislead.
Example
Consumer prices rose by about 1.8% between 2023 and 2025.
A ministry with Rs 5.0 million in 2023 would need Rs 5.09 million in 2025 just to keep the same buying power.
If its {b} budget is higher than that, it grew in real terms. If it is lower, it shrank in real terms, even if the printed figure went up.
How it works on this site
- Use the Amounts selector at the top of any page to show every amount in the prices of a year you choose. The choice is remembered.
- The Compare page always shows both views side by side: the earlier year as printed, the same amount restated in the later year prices, and the later year as printed.
- Department pages draw a second, dashed line in 2026 prices next to the printed line.
Price index used
| Year | Index | Annual average inflation | Multiply by this to express in 2026 prices | Status |
|---|---|---|---|---|
| 2017 | 96.8 | 7.7% | x 2.246 | Official |
| 2018 | 98.9 | 2.1% | x 2.200 | Official |
| 2019 | 102.3 | 3.5% | x 2.125 | Official |
| 2020 | 108.7 | 6.2% | x 2.002 | Official |
| 2021 | 116.2 | 7.0% | x 1.871 | Official |
| 2022 | 174.9 | 50.4% | x 1.243 | Official |
| 2023 | 203.8 | 16.5% | x 1.067 | Official |
| 2024 | 207.1 | 1.6% | x 1.050 | Official |
| 2025 | 207.5 | 0.2% | x 1.048 | Official |
| 2026 | 217.5 | 4.8% (calculated) | x 1.000 | Provisional |
Please note
- We use the National Consumer Price Index (NCPI), the official island-wide measure compiled by the Department of Census and Statistics.
- Consumer prices measure what households pay. A ministry buying medicines, fuel or paying salaries may face different price changes, so treat real changes as a guide, not an exact measure.
- The 2026 figure is provisional. It applies the January to August 2026 change (4.8%) to the 2025 average and will be replaced when the annual average is published.
- Years 2017 to 2021 come from the older NCPI series (2013=100) and are linked to the current series (2021=100) at 2022, using the published values of both.
Sources
- Central Bank of Sri Lanka, Annual Economic Review 2024, Special Statistical Appendix, Table 3 (Prices)
- Central Bank of Sri Lanka, Annual Economic Review 2025, Special Statistical Appendix, Table 3 (Prices)
- Central Bank of Sri Lanka, Weekly Economic Indicators (monthly NCPI), 2026 issues
- Department of Census and Statistics, National Consumer Price Index
Data retrieved on 2026-10-18.
Annual-average NCPI as published by the Central Bank of Sri Lanka (compiled by the Department of Census and Statistics). Years 2017-2021 come from the NCPI (2013=100) series and are linked to the NCPI (2021=100) series at 2022 using the published 2022 values of both (221.5 and 174.9). 2026 is provisional.