Inflation in March takes a sort dip, but annual inflation moves up to 11.1 %

The headlong rise in inflation showed signs of slowing in March as the point to point increase in Colombo inflation (CCPI) for the last 12 months shifted down slightly to 15.5 per cent from 15.9 per cent a month before, Central Bank said. The headlong rise in inflation showed signs of slowing in March as the point to point increase in Colombo inflation (CCPI) for the last 12 months shifted down slightly to 15.5 per cent from 15.9 per cent a month before, Central Bank said. The annual average number continued to rise to 11.1 per cent from 10.1 percent due to way it is calculated.

The Countrywide inflation measured by the Sri Lanka Consumer Price Index has not been released since January, when it was 18 per cent.

The Central Bank has stopped printing money to fund the government of late, though it is still depending on the government to cut spending and reduce inflationary pressures, without proactively using monetary policy to counter rising prices.

With a US $ 200 mn debt moratorium in the bag, analysts say the government may be expected to do better on the fiscal front this year, especially if fuel and electricity prices are raised quickly.

Central Bank also said in 2004 growth slowed to 5.4per cent, with the last quar