ECONOMYNEXT – Sri Lanka’s 12-month inflation was at 4.0 percent in September 2020, slowing from 4.1 percent a month earlier, though prices rose 0.7 percent during the month, data from the state statistics office showed.
The Colombo Consumer Price Index, the country’s mostly widely watched price gauge rose to 136.3 points in September from 135.4 in August.
The foods sub-index jumped 1.6 percent in September, rising 11.5 percent over the 12-months.
Sri Lanka is printing unprecedented amounts of money and excess liquidity has flooded money markets and stock prices are rising.
Up to July 2020, private credit was negative. However in August private credit turned positive.
Sri Lanka has slapped the worst import controls since the break-up of the Bretton Woods system in 1971 and smuggling has begun.
The Sri Lanka Navy is nabbing contraband turmeric and the price controls have been slapped on coconut. (Colombo/Sept30/2020)