Sri Lanka inflation eases to 7.1-pct in June

Directory launched in the presence of Jagath Perera, CA Sri Lanka President, Manil Jayesinghe, CA Sri Lanka Vice President, Harsha Basnayake, Ernst & Young Asia Pacific Transaction Advisory Managing Partner, Aruni Rajakarier, Chairperson of the CA Sri Lanka Women Empowerment Committee, Anoji De Silva, Alternate Chair of the Women Empowerment Committee and Dulani Fernando, CA Sri Lanka CEO

June 30, 2011 (LBO) – Consumer prices in Sri Lanka’s capital Colombo rose 7.1 percent by June 2011, down from 8.2 percent in May, with prices falling 0.2 percent during the month, the government’s statistics office said. The food category fell 1.0 percent during the month, but all other categories rose or were flat. The clothing and footwear category gained 1.3 percent, furnishing and housing rose 1.0 percent and transport rose 0.8 percent. Sri Lanka’s central bank has earlier said that inflation will ease after April. Sri Lanka still has some of the highest levels of inflation in Asia, though lower than Vietnam.

From June the statistics office has changed base to a new consumer survey which measures consumption patterns in 2006/7.

The share of food has fallen to 41.03 percent in the new Colombo Consumers; Price Index from 46.7 percent in the earlier base of 2002.