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Sri Lanka inflation falls in March 2020

ECONOMYNEXT – Sri Lanka’s 12-month inflation fell to 5.4 percent in March 2020, from 6.2 percent in February helped by falling food prices, data from the state statistics office said.

The Colombo Consumer Price Index fell absolutely by 0.9 percent from 134.6 points to 133.4 points during the month.

The food index fell 3.2 percent, helping bring down the overall index, while non-food continued to grow.

Sri Lanka’s central bank cut rates and injected large volumes of cash into money markets, despite having a soft-pegged exchange rate, putting the exchange rate under pressure, despite weak private credit.

Sri Lanka’s central bank started injecting money from February 2020 in a series of helicopter drop style moves. (Colombo/Apr01/2020)

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