Sri Lanka information highest deflation since 1961

An unprecedented monetary crash in 2022 introduced months of client items shortages, with inflation peaking at almost 70% that yr. File
| Photo Credit: Reuters

Sri Lanka’s client costs fell by 2.1% in November, the best deflation price recorded by the economically fragile island nation since 1961, official knowledge confirmed Saturday (November 30, 2024).

An unprecedented monetary crash in 2022 introduced months of client items shortages, with inflation peaking at almost 70% that yr.

Since then, a $2.9 billion bailout loan from the International Monetary Fund (IMF), tax hikes, and different austerity measures have slowly made headway in repairing the island’s financial system.

“Headline inflation will remain negative in the next few months, deeper than previously projected, mainly due to larger downward adjustments in energy prices and reductions in volatile food prices,” Sri Lanka’s central financial institution mentioned in a press release.

The financial institution mentioned inflation was prone to return to its goal stage of 5 p.c within the coming months.

Sri Lanka had already seen deflation of 0.8% in October and 0.5% in September.

President Anura Kumara Dissanayake, who was elected in September, has vowed to keep up the IMF bailout programme negotiated by his predecessor that features increased taxes and cuts to state spending.