Sri Lanka inflation rises 3.8-pct in June
Saturday June 29, 2019 12:43
ECONOMYNEXT- Inflation in Sri Lanka’s capital Colombo grew 3.8 percent in June from a year earlier, down from 5 percent in May, the state statistics office said.
The Colombo Consumer Price Index compiled by the Census and Statistics Department grew 0.9 percent to 130.2 points in June from a month earlier.
Inflation has now fallen below the 4-6 percent target range of the central bank, amidst low credit demand and economic growth.
Sri Lanka’s rupee has been trading at a stable rate around 176 in June, after appreciating earlier in 2019.
The rupee collapsed in 2018 from 153 to 182 against the US dollar as the central bank printed money to control interest rates, undermining a soft-peg.
Food prices in May fell 1 percent from a year earlier with coconut prices falling. Non-food prices rose 6 percent with higher costs of education and utilities.
Sri Lanka’s growth is expected to slow down following the Easter Sunday terror attack, which has hit the tourism industry and its supply chains.
However, Finance Minister Mangala Samaraweera said that the tourism industry shows signs of recovering faster than expected. (Colombo/Jun29/2019)