Friday, March 24, 2023

Sri Lanka’s inflation rate drops as economy looks to rebound

The Central Bank said the economy is set to make a gradual recovery during the year 2023 via timely implementation of corrective policy measures.

• January 25, 2023
Sri Lanka’s Central Bank (CBSL)
Sri Lanka’s Central Bank (CBSL) [Photo Credit: CGTN]

Sri Lanka has recorded a drop in inflation for the third consecutive month as the economy looks to gradually recover, the country’s Central Bank said on Wednesday.

The Central Bank said the year-on-year headline and core inflation continued to decelerate in December 2022 for the third consecutive month.

“The downward adjustment in inflation rates is expected to continue through 2023, supported by subdued aggregate demand resulting from tight monetary and fiscal policies, expects improvements in domestic supply conditions.”

Also, the passthrough of easing global commodity prices to domestic prices, along with the favourable statistical base effect is expected to improve,” the Central Bank said in its latest monetary policy review.

As per the GDP estimates published by Sri Lanka’s census and statistics department, the real economy is estimated to have contracted by 7.1 per cent in the nine months ending September 2022, on a year-on-year basis.

With tighter monetary and fiscal policies in place, along with disruptions to domestic supply conditions, real activity in the final quarter of 2022 is also expected to have remained subdued.

The Central Bank said the economy is set to make a gradual recovery during the year 2023 supported by the expected improvements in domestic supply conditions, underpinned by the timely implementation of corrective policy measures.

Meanwhile, anticipated improvements in foreign exchange flows and the resultant enhancement in business and investor sentiment were expected to reinforce the expected recovery in the period ahead.

Sri Lanka is trying to recover from a serious economic crisis, which hit the country in 2022 resulting in the authorities being unable to pay for fuels, medicine and other supplies imported from overseas.  


We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Katsina State


Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Minister of Aviation, Hadi Sirika and Air Nigeria


Buhari regime assures Nigeria Air will fly before May 29

Mr Sirika said the national carrier would create numerous jobs and better opportunities in the industry when fully established.



Court sentences four to death by hanging for kidnapping, armed robbery

Justice Lateef Lawal-Akapo held that the prosecution proved the charges of conspiracy, robbery and kidnapping against the convicts beyond all reasonable doubt.

Naira and Dollar


Naira weakens further at I&E window, exchanges at 469.50 per dollar

The rate represented a decrease of 0.04 per cent compared to the N461.50 for which it exchanged to the dollar on Wednesday.

Iyorcha Ayu


PDP names caretaker committee for Katsina chapter after sacking SWC

Mr Ologunagba said that the committee was expected to run the affairs of the party in the state for a period not exceeding 90 days.

Iyorchia Ayu and Ayo Fayose


My suspension is Ayu’s “last kick of a dead horse”: Fayose

He said in a matter of days, the “inglorious tenure” of Mr Ayu as national chairman of PDP will become history and the party will enjoy a new lease of life.

Oby Ezekwesili


Keyamo: Oby Ezekwesili warns Buhari regime against arresting Obi, Datti

Mrs Ezekwesili warned the Buhari regime and SSS against actioning Mr Keyamo’s “foolish ideas.”