ECONOMYNEXT – Sri Lanka’s inflation in the capital Colombo eased to 3.9 percent in the 12-months to April 2021, from 4.1 percent a month earlier with prices falling 0.1 percent during the month, data from the state statistics office showed.
The widely watched Colombo Consumer Price Index fell 0.1 index points to 138.8 points during the month. The food sub-index was up 9.0 percent during the year compared to 3.9 percent when non-foods were included.
Sri Lanka’s private credit has been weak up to January 2020, but the currency depreciated amid money printing and government credit amid record money printing.
Most of the printed money had flowed out to the country as unsterilized interventions in debt repayments, triggering a balance of payments deficit.
However after February private sector credit has started to pick up. (Colombo/April30/2021)