Sri Lanka’s consumer price index fell 2.1 per cent year-on-year in November after dropping 0.8 per cent in the earlier month, the statistics division stated on Friday.
The Colombo Consumer Price Index, a number one indicator for broader nationwide costs, tracks inflation in Colombo, Sri Lanka’s largest metropolis.
Prices in the meals class slipped to 0.6 per cent this month from 1 per cent in October. In the non-food class, costs dropped to minus 3.3 per cent on the month from minus 1.6 per cent in October.
Reductions in energy tariffs and gasoline costs in addition to an appreciating rupee have helped to scale back inflation to the bottom level in 9 years, analysts stated.
“Deflation is expected to be around till February and we are likely to see inflation reach the central bank’s projection of 5 per cent around August or September 2025,” stated Dimantha Mathew, head of analysis at First Capital.
Sri Lanka suffered file inflation after its worst monetary disaster in many years pummelled the economic system, which has stabilised because it secured a $2.9-billion bailout from the International Monetary Fund (IMF) in March 2023. Taking benefit of low inflation, Sri Lanka’s central financial institution set a brand new single coverage charge of 8 per cent on Wednesday, easing financial settings beneath beforehand used benchmarks and setting the stage for a sustained restoration from the disaster.
Sri Lanka’s economic system is predicted to develop by 4.5 per cent-5 per cent in 2024, barely above the World Bank’s estimate of 4.4 per cent, newest central financial institution information confirmed.
On Tuesday, Sri Lanka launched a long-awaited bond swap, a significant step to finishing its $12.55 billion debt restructuring and enabling its fragile financial restoration to proceed.
Bondholders have till Dec. 12 to vote in assist of the proposal, which might see them swap present bonds for a set of latest points.
