The Central Bank of Sri Lanka (CBSL) states that the cost of living for individuals in the country has doubled compared to 2021.

However, the increase in the cost of living in 2024 compared to 2023 has been minimal, according to Central Bank Assistant Governor Dr. Chandranath Amarasekara.

Speaking at a press conference held at the Central Bank of Sri Lanka, Dr. Amarasekara noted that although the public is currently benefiting from a decline in inflation, the overall cost of living remains significantly higher than it was in 2021.

“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. For instance, if we compare the years 2021 and 2024, the cost of living has effectively doubled,” Amarasekara said.

“The public is certainly experiencing some relief due to the reduction in inflation. However, when we compare current conditions with those of 2021, it’s clear that the cost of living is still at a level that is strongly felt by the people. To counter this, we require the kind of economic growth that can boost incomes- whether for public sector employees, private sector workers, or business owners.”

Amarasekara expressed optimism that such economic growth will be realised in the future, leading to a gradual restoration of real incomes lost in recent years.

“Occasionally, we observed salary increments, especially within the public sector. However, these adjustments are often not linked to productivity. As economists, we believe that salary increments should be aligned with productivity improvements to ensure sustainable economic development,” Amarasekara added.