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Sri Lanka inflation slows to 5.2-pct in April 2020

ECONOMYNEXT – Sri Lanka’s 12-month inflation slowed to 5.2 percent in April 2020, from 5.4 percent in March with prices rising 0.1 percent during the month, data from the state statistics office showed.

The Colombo Consumer Price Index, the country’s most widely watched inflation gauge rose to 137.7 points in April from 136.9 in March.

The food index of the consumer price index grew 0.4 percent to 142.2 points from 141.6 points. The non-food index was flat 130.2 points.

Sri Lanka is under a Coronavirus curfews where prices of some goods have been volatile amid distribution problems.

Prices of agricultural output had also fallen with no traders amid a permit raj and controls.

Sri Lanka’s central bank has printed large volumes of money, but with weak private credit, its transmission had been delayed.

However he printed money had put pressure on the currency, triggering import controls and created
‘foreign exchange shortages’ making it more difficult for the government to repay foreign debt. (Colombo/May22/2020)