March 12, 2008 (LBO) – Sri Lanka’s high inflation, which is shrinking the incomes of consumers, should be reduced to promote economic activity, a top consumer durables firm which is feeling the pinch of rising prices has said. Singer Sri Lanka is targeting high-end customers as the country’s mass market turned sluggish in the face of rocketing prices.
“We had double digit inflation three years in a row and we are heading for the fourth year of double digit inflation. And that is astoundingly out of control,” Hemaka Amarasuriya, chairman Singer Sri Lanka said.
“There should be real growth in the country which is not taking place now, and inflation has to be contained.
“There was a difference last year, it was very visible and it will continue this year unless the economy eases up and inflation is managed by the government.”
Singer Sri Lanka saw its sales flatten last year as consumers lost buying power from 20 percent inflation for two years in a row. Even last year the firm raised prices.
“Sales grew 13 percent last year with nine percent from price increases and the real growth was four percent which is not enough as we are used to continuous double digit growth,” Amarasuriya said.
“In the last