Sri Lanka’s Inflation Rate Falls to Lowest in More Than 4 Years

March 31 (Bloomberg) -- Sri Lanka’s inflation eased to the slowest pace in more than four years, giving the central bank room to cut interest rates to boost the island’s economy.

Consumer prices in the capital Colombo rose 5.3 percent in March from a year earlier, after increasing 7.6 percent in February, the statistics agency said on its Web site today. That was the lowest reading since at least January 2005, according to the data available on Bloomberg.

Governor Nivard Cabraal may add to three interest-rate cuts in as many months to help shield the $32 billion economy from the global recession after gross domestic product expanded last quarter at the slowest pace since at least 2003.

>> Full Story