Inflation drops from 28% to 10.7%

Sri Lanka’s inflation has dropped considerably. Central Bank Deputy Governor W.A. Wijayawardena said inflation which stood at 28 percent in June last year had decelerated to 10.7 percent. He forecast a further decline.

The Deputy Governor said the inflation rate is measured in terms of the Colombo Consumers Index prepared by the Department of Census and Statistics. In July 2008 it increased up to 28 percent. From January this year, it declined to 10.7 percent. He attributed this decrease to the stringent financial policies adopted by the Central Bank. According to Central Bank estimates, the rate will fall to four to five percent in the mid-year.