Sri Lanka’s inflation eases to 2.7-pct in Feb

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

Feb 29, 2012 (LBO) – Sri Lanka’s consumer prices rose 2.7 percent in the 12-months to February 2012, easing from 3.8 percent in January, though the index gained 0.4 percent in the month, the state statistics office said. Interest rates have since risen.

Sri Lanka’s inflation remained low by historic standards despite a steep depreciation of the rupee in February.

The index gained 1.2 percent in December following a fall in the currency in November.

In February though non-food items in the index rose 1.8 percent in the month and were up 9.2 percent from a year earlier, food prices were down 4.1 percent from a last February. In the early part of 2011 food prices spiked amid floods.

In February the rupee was floated though some intervention is taking place from time to time.