April 30, 2013 (LBO) – Inflation in Sri Lanka’s capital Colombo rose 6.5 percent in April 2013, from a year earlier, easing down from 7.5 percent in March, the state statistics office said. The Colombo Consumer Price Index fell 0.5 percent or 0.8 points during the month to 170 points during the month helped by a 1.4 percent fall in the food component of the index. Non-foods rose 0.4 percent.
Sri Lanka’s central bank has expected the inflation to ease off from March, as the base effect of currency depreciation in early 2012 wore off.
Sri Lanka’s consumer price index is now unchanged from the January level of 170 points.
Past experience has shown that that it is normal in Sri Lanka for inflation to ease after a balance of payments crisis. The index can even fall in absolute terms with prudent Central Bank policies which allow exchange rate appreciation. (Sri Lanka inflation spike could be one-off: IMF)
In recent weeks the Central Bank has prevented the e