Sri Lanka inflation decreased to 3.5-pct in August 2014

August 29, 2014 (LBO) – Sri Lanka’s consumer prices dropped 3.5 percent in the 12 months to August 2014, with inflation compared to 3.6 percent in July, official data showed. During the month the Colombo Consumer Price Index dropped 0.05 percent on top a 1.0 percent rise in July, the state statistics office said.

Sri Lanka’s credit growth has been slow in the past year with pawning loans in particular shrinking, but the government has been borrowing abroad and excess liquidity has been high in money markets.

Sri Lanka’s Central Bank wants to keep inflation at mid-single digits this year.