Sri Lanka August inflation falls to 24.9-pct

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Aug 29, 2008 (LBO) – Consumer prices increases in the Sri Lankan capital Colombo fell to 24.9 percent in the 12-months to August from 26.6 percent in July, government statistics showed. Sri Lanka’s Central Bank has kept monetary policy tight from the beginning of the year under a strict reserve money targeting regime, which was further tightened mid-year.

The statistics office said a revised Colombo Consumer Price Index (CCPI) remained flat in the 30-days to August. In July the index grew by only 0.2 percent.

Central Bank deputy governor W A Wijewardene told a public seminar Thursday that inflation would continue to moderate over the coming months and vegetable and fish prices had fallen rapidly from their highs.

The food sub-index of the CCPI Index fell to 217.8 points in August from 218.6 points July. In June the food index hit 222.0 percent. The annual average of the index, which is averaged over 24 months and is a lag indicator, continued to move up to 22.6 percent from 21.9 percent in July.