Sri Lanka to target mid-single digit inflation next year: CB Governor

Aug 16, 2013 (LBO) – Sri Lanka will target mid-single digit inflation from next year from the current single digit, Central Bank Governor Nivard Cabraal said. Inflation spiked to near 10 percent earlier in 2013 following high credit growth and balance of payments trouble which sent the rupee reeling to 130 to the US dollar from 110 rupees.

Sri Lanka’s inflation rose 6.1 percent in the year to June 2013 easing from 6.8 percent in July.

“Next year we will be more ambitious,” Cabraal told a forum in Colombo organized by Standard & Poor’s, a rating agency.

“Next year we will be targeting a mid single-digit inflation. That is between 4-6 percent a year.”

The Central Bank says it is has maintained inflation in single digits for four and a half years, the longest since monetary and fiscal policy deteriorated in the late 1970s.