Sri Lanka inflation accelerates to 7.5-pct in July

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

July 29, 2011 (LBO) – Consumer inflation in Sri Lanka’s capital Colombo accelerated to 7.5 percent in July from 7.1 percent in June, with prices rising 0.4 percent during the month, the government’s statistics office said. Non-food items in the basket rose 1.4 percent and food and non-alcoholic beverages fell 0.8 percent.

Sri Lanka’s inflation is among the highest in Asia but lower than India and Vietnam.

Several dollar pegged nations in Asia have been able to keep inflation below that of Sri Lanka, but current levels are below the highs seen in the past two decades when central bank money printing to bridge deficits were higher and the peg also weakened. The peg serves as an external anchor for inflation in Sri Lanka.